Considering that it has a 1GHz processor and 256MB of ram, I don't think it's wise to invest in an IDE controller. Thanks for the suggestion though.
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what is the model of motherboard and what size of HDD do you try to use ?
As Detale suggested I'd try a different cd/dvd drive....and if you had a spare HD just to be sure too.
You could also take out the cmos battery and leave it out for a few hours, pref over night and that should reset the bios.
Make sure the jumper settings are set correctly..... I'd certainly try a cd/dvd drive though for sure.
Good luck