I can't boot from CD but floopy drive is working. It is a Gateway machine. It starts with windows Xp logo and then goes to the screen with different choices to start up: Start windows normally, Last good known, safemode etc). In BIOS it is setup to boot from CD (light does come up on CD drive) then floopy and HD. I have even used gateway restore CD and Gateway Operating System windows Xp Professional CD for reinstatllation but it still keeps going to the same Startup Option screen.
Hi welcome,
Strange, have you tried disabling the rest and allowing boot from CD as the first option, I would check and see if the settings are being saved.
As you probably know, you normally set the bios to boot from CD and then reboot with the installation disc in should take you to window set up screen.
I'd be tempted to disconnect all drives except the hard drive and CD rom, making sure the hard drive is configured correctly as Master or cable select, the hard drive and CD must be recognized in bios.
There may be further help here, especially booting from floppy Clean Install Xp.
Install XP Professional 
Linear Mode
