Can't install Windows 7 after purging HD

With the USB drive plugged in the boot order is:
1: USB CDROM
2: ATAPI CD/DVD ROM Drive
3: Notebook Hard Drive
4: USB Floppy
5: USB Hard Drive
6: USB Diskette on key
!7: Network Adapter

Well, Salzus, now I'm out of options I can think of. It could be a keyboard fault, but this can't be handled online, someone has to physically inspect the laptop.

It can't be the keyboard if I can go into the bios and move around to select the options. If it was a keyboard fault it should still not be showing a flashing cursor. I am stumped too.

Win7 installer cannot boot from a CD-ROM as it is on a DVD.

If the USB drive boots DVD's then it should be labeled DVD.

But I used it to install windows7 on a net book(as you know net books have no CD-ROM, unless it worked because it had an OS already.

The front of the CD-Rom player also states DVD - Multi it just shows up at USB - CD-ROM

Either way, when I use the external drive or the built in drive it does the same thing.

Any suggestions?

Don't know if this helps but I used DBAN Nuke to purge the HD. I put that CD in now and it can read it. So I am thinking perhaps it is an issue with reading DVDs so I am currently download XP from the Microsoft ISDN site and will try and install it. If it works then I got a stepping stone.