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Are you trying to boot a DVD or a CD? I have a compaq nw8000 and I found that a couple of years after getting the laptop, it no longer booted from DVD, but to this day, I can still boot from CD.
If you have the same problem, then your only real solution is to replace the drive.
Can I take out the SATA 2.5" HDD and hook it to pc directly using SATA data and power cables?
It is CD media... cannot boot from it... Have not tried DVD