The motherboard beeps twice when it is switched on, don't know if that helps any, i've heard that some problems can be diagnosed from the beeps of the motherboard.

Sounds like you are running some sort of disk management software if you can get to the Windows menus, but the Windows install doesn't see your hard drive. Do you get startup messages for boot options? If so, select the CD after the prompt and run the recovery console on the Windows CD. Could be as simple as running chkdsk from the console to resolve your issue.

I wont let me run the recovery console because its cant find the hard drive to recover from...just keeps saying hard drive not found

Is it possible that the problem could just be a software problem?

You mean with the hard drive, or with the floppy drivers not being loaded?

I'm pretty sure both your hard drive and floppy drives are having problems. There is some hardware issue preventing your floppy drive from working. I doubt your Windows install CD is bad and that's why you can't load the SATA drivers.