THANK YOU ALL For your input and help with this!!!! At this time, we have a 'working' solution albeit temporary.
UPDATE:
I added new CMOS batteries to all the sytems - NO HELP at all. An email 'plea' to hp was answered with a request to change cables & IDE channels. NO help at all. I asked < PLEADED > that they send me a new BIOS or link for a BIOS to fix this problem. They never did - the first level support person < A Mr. (ahem) NEO > - sigh: shades of young punkish 'head-inflated-Matrix queerfandom' person - decided that it was over his head and sent it to his supervisor. (I sincerely pray this "spervisor" person is more than 18 years old!)
Here's how I fixed it:
I added (this is very strange so you may want to read it twice) a 2nd HD to the primary controller (IDE) where the new HD was connected and all is well now! At boot up or shut down / restart (or whatever) the BIOS always <A L W A Y S> finds both HDs and it boots right up without trouble.
BUT - If I remove the 2nd (slave) hard drive from the configuration (regardless if it's connected to the primary or secondary IDE controller) then the STUPID hp PC does not boot up after a complete shutdown. The BIOS says "no OS found".
Read this twice: If a single HD is installed to either the primary or 2ndary IDE controller/channel, the BIOS will not detect it. You must have 2 HDs installed with this model type of hp PCs!
Pretty freakin' bizarre if you ask me. (not really, as I suspect a BIOS chip failure on all these systems) - this explains many 'phantom' troubles they have had over the last year or two.
Anyway, the customer is marginally satisfied (temporarily) as we pursue long term adjustments and changes to their office systems and server.
I can tell you this as a FACT: A) I am 44 years old and have been 'playing' on PCs and LANs and WANs since way back in the dark ages (that would be punch cards and black and white non-GUI screens), B) after spending 4+ years as an hp white-box reseller, I can not - in good faith -recommend hp devices or systems because
C) hp is NOT the hp I know and love. The new hp is a sick mutation of what they once were. So D) if you own stock - SELL IT! (I did just this last week!)
I gave this customer a new proposal for a solution with 7 new DELL office workstations and an upgrade to the DELL server they presently use. I was told that due to my presentation to the board of directors, they will approve it next month.
As far as I am concerned, hp failed to support me as a reseller. They failed to support the end-user as a customer and as a result, they failed to gain the revenue from at least one customer.
Thanks again for all your help & suggestions: I truely feel your pain if you traffic in hp products ....... If you found this posting while searching for a 'fix' for this hp model, I STRONGLY RECOMMEND that you build your own PC with top shelf parts or that you buy DELL products! (damn shame that Compaq sold out to hp - I really loved their rack mount servers!!)
-Steve (x-tek; old-fart geek)