Given that you've checked everything, I think you're right: the HD is dead or non-bootable. Does it spin up? You can probably tell by touching it as you boot.
If you know how to transfer this drive to another computer, it's worth trying, but it's far easier to get a USB adapter like this one:
http://www.tigerdirect.com/applications/SearchTools/item-details.asp?EdpNo=2329300&CatId=470
Hook up to a USB port in a few seconds instead of installing as a second drive. A real time saver, and it works with IDE/SATA and laptop drives.
hughv
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