Yes CD/DVD Drive is set as 1st boot device. SATA HDD set as 2nd boot device.
Regarding AHCI, in MSI's CMOS Setup, Integrated Peripherials, HD Controller/On-Chip ATA Devices, only option where AHCI is available is "RAID Mode" Options are: AHCI, IDE, RAID.
Choosing AHCI option results in WIN 7 starting from DVD, but cannot find the HDD. Only option that recognizes the HDD is the IDE option. Error states: "Windows cannot format a partition on disk 0. The error occured while preparing the partition selection for installation. Error code: 0x80070057"