|First, I hope that it is a CD/DVD drive because Windows 7 ships on a DVD, not on a CD.|
Second, You need to set your boot order in your BIOS so that the DVD drive is first, before your hard drive otherwise it will not read it.
Third, you will need to initialize (if never used before) your hard drive, partition your hard drive, and format your hard drive before the actual installation can proceed. The good news is that the installation disk can do these things, but you need to select Custom and Partition/Format. Then you need to decide how you are going to partition your drive (best if you think about this ahead of time), you can partition the entire drive as one large drive, or you can make a single partition for your operating system and some core programs and utilities and later (once in Windows 7) add another partition ('drive') for your programs and a third for your files. If you choose multiple partitions (many reasons this is better) 80GB to 120GB will be enough for your operating system, antivirus and a few essentials, since you have a large drive go with 100GB to 120GB.
I am assuming that you already went over necessary BIOS settings and everything is assembled correctly. If this still gives you trouble, or you do not understand what you need to setup in your BIOS, you may want to get some help setting this up. If you want to proceed and have specific questions, of course ask them, BUT this time include ALL of your system specs since many may be board or CPU specific.
You have to be a little bit crazy to keep you from going insane.