Thanks for letting us know butler.
If I read this thread correctly that might explain it.
If the BIOS was set to to read HD>Floppy>CD in that order then if it couldn't read the hard drive, which would explain the no safe mode option, then it would move on to the next drive.
Since there was no floppy drive on the computer it would cause an error. Had that been disabled in the BIOS or if there was a bootable CD in the CD drive it might have moved on to the CD drive.
Please let us know how it goes once you get a new sata drive and reinstall Windows to it.