It looks more like the wrong track
When you power up does the bios/cmos see the drive at all.
^^^^^^
Is there an option to manually set up the drive in CMOS.
The CD boots ok? What OS?
Some of those OEM CD's require the hard drive be preformatted (Sometimes even with 98 os) before it will install XP... My Dell CD is a perfect example.
I would try a boot floppy, try to format the hard drive manually, then try the OS CD
If you can get the drive to format from a floppy and you happen to have 98 try it..
You might also try one of the drive installation tools from Maxtor or one of the other hard drive manufacturers...
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