Windows 7: disk boot failure when HD boots first

I installed Windows 7 64 7100 on my XP machine (not dual boot). It has a non-raid sata drive set up.

If my boot order is HD first, CD second, I receive an error: "Disk boot failure, insert system disk and press enter".

If my boot order is CD first, HD second, but I don't boot from the CD, Windows 7 starts from the HD just fine.

I've done a reinstall and run disk diagnostics (all clean), startup repair from the DVD, and bootrec. No change.

The odd thing- bootrec/scanOS reports: "total identified windows installations: 0".

Once started, everything seems to work fine. Any ideas?

That is odd? from what im thinking, something with the MBR is playing up, maybe a piece of malware in there?

Im not implying anything but is your windows 7 legit?

If your using a hacked version of 7, if anything like some of the hacks for vista.
They sometimes use whats called loaders.
It boots to a micro-version of linux( or modified linux boot loaders, I forget) that load OEM bios information and keys into the ram then boots into the os. This tricks the activation process into believe you are using lets say an alien ware pc when you could be on custom built or any other manufacturer.

If you are using a legit copy I would suggest updating your bios.

Do you only have one hdd?? If not, your Windows 7 boot hdd must be selected as no.1 HDD. That is done in bios/had disk order.

Legit and activated.

I have 4, but the C: is listed as Disk 1, Healthy (system, boot, page file, active, crash dump, primary partition). Weird, ain't it?