Older P4 sys HDD crashed Installed a new WD3200aajb Set the cd to 1st in boot order. after the POST I get the message "Drive Not Ready- System Halted" blinking curser

If there is nothing on the new hard drive and no CD then that would be the appropriate response.  You need an installation CD to put Windows on the new drive.

also... what mainboard do you have?

Just to confirm what you have done:

1.  Set the BIOS to boot from CD as first priority
2.  Loaded a bootable Windows installation CD into the CD drive
3.  Rebooted the system

The next thing that happens is that the system displays "Drive not ready - System halted" instead of "Press any key to boot from CD."  Is this sequence of events correct?

There is nothing on the New HDD, I have the XP Pro O/S CD in the cd drive.

I have rebooted with the insallation cd in the drive. The MOBO is a Intel D850GB it uses the RD ram

Yes,  DrKlahn the "Drive not ready - System halted" instead of "Press any key to boot from CD."  
that is correct. The 3 step you stated have been done.

Ok I'm checking the Installation CD

The installation cd worked in another Computer.  I will start working on the cd/dvd drive issue
 

The DVD was working, I guess I shouldn't be suprised HDD and DVD going out at the same time.   Thanks for the help