All I can say is welcome to the world of computers.
I think the support guy that you phoned is trying to make up excuses, I have never heard of having to "Flash the BIOS". You used to have to do that in the old days so that the BIOS could recognise a newer type of hard drive (e.g 40Gig), I have never had to do that to get a CD-ROM drive working.
Then again you say you can boot off the Windows CD but it blue screens you. This means that the BIOS is detecting the CD-ROM so there shouldn't be any need to Flash the BIOS.
Some things for you to check.
Firstly go into the BIOS and check under Standard CMOS and see whether it has detected the Hard drive and Cdrom. (If so write down the names of both and post them on this forum for me)
Make sure that the jumper settings on both the Hard-Drive and CDROM are set correctly. I would have the hard drive set to Master and the CDROM set to slave.
Try running them on the same IDE cable to begin with, if it doesn't work then run the hard drive on the Primary IDE and the CDROM on the secondary IDE.
As a troubleshooting thing, remove any device that you do not need for now. E.g sound card/ network card e.t.c
Just have the basics so that you can try pin-point were the problem is.
Do you have easy access to another CDROM drive, for example you could take the one out of your home machine and try it, see if it works. If it does you could load up Windows and once everything is installed, try put the other drive back in and see if it works.
Could you also check the model number of the CDROM drive and post it here so I can look it up and see whether there are any known issues with it.(should be on the sticker on top of the CDROM drive)