Windows has encountered a problem communicating with a device connected to your computer.

When this computer is powered on, I get the following info:

Windows has encountered a problem communicating with a device connected to your computer.

this error can be caused by unplugging a removable storage device such as an external usb drive while the divice is in use, or by falty hardware such as a hard drive or cd-rom drive that is failing. make sure any removable storage is properly connected and then restart your computer.

if you continue to recieve this error message, conttract the hardware maunfacturer.

status: 0xc00000e9
Info: an unexpected I/O error has occurred.

I ran the on-board diagnostics from the Advanced Menu F8, which would only appear 1 of 10 boots.

Here are the results:
error code 2000-1042 validation 46541
msg: hard drive 0 - s/n W0403WV6, self test unsuccessful. Status = 79

I put in a Windows 7 Pro CD and boot from it, it shows Windows Loading Files, then Starting Windows with the Logo, then a blank screen with the curser in the middle of the screen with is movable. And that is how it stays.

I have reseated the memory module and CD-ROM player.

Pressing F2 during boot up brings up the BIOS. From reading a tip on the internet, I checked  Advanced>SATA Operation. It is set to AHCI, the only other choice is ATA.

Is this a hardware, software, or virus issue and how should I proceed?

thanks in advance!