Computer wont boot from CD due to a virus

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My Windows XP SP3 computer was recently hit by a virus (2 days
ago).Its a 2 year old custom built computer and is using a foxconn
motherboard (if that's of any importance). Currently, it boots and I
can view files and everything but none of my programs run (neither do
system restore, and some other windows utilities) due to some rundll
file missing from the system32 folder.
I was advised to just reformat my drive. I put in my windows boot disc
and rebooted but when I go into the boot menu to select boot from CD,
I hit the arrow keys to make my selection and nothing happens. Im
using a standard usb keyboard that requires no installation software
by the way. When I go into the bios, it lets me maneuver around the
menus though and I set the boot priorities (3 of them total) all to CD-
ROM. Before this, the first two were set to cd-rom and the last one
was set to hard drive but the computer would always boot from the hard
drive anyway. Still with all three boot priorities set to cd-rom, the
cd still wont boot. When logged into windows, I can run the cd so I
dont think that its faulty (or maybe it still is). I did unplug the
hard drive and boot with the cd in the disc drive and the cd booted.
When I rebooted this time with the hard drive in, it booted again to
the hard drive.

So presently, Im wonderring if its a bios problem? If it is, is there
a way to fix it? And if its not...what might it be?
.

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