OK, take a step back and forget about trying to install windows for a minute - you need to make sure that the BIOS detects all the devices properly first.
Apologies if I'm teaching you to suck eggs here but it's easier to start from basics rather than guess where you are. To get the HDD and the CD working on the same cable one needs to be set as the master and one as the slave, normally the HDD would be set as master and the CD as slave.
So first disconnect the CD so that only the HDD is on the cable, make sure the jumpers on the HDD are set to master. Boot the machine and go into the BIOS, check if the HDD is detected, if it is great, skip the rest of the paragraph. If it isn't detected then you need to figure out why - check the cables (replace it if necessary), make sure they're securely connected at each end and more importantly the right way round.
Once the HDD is being detected repeat the process for the CD drive but make sure its jumpers are set to slave. Again check that it's detected in the BIOS, if not try the same checks as above.
