Because of the error message, I will ask, where did you get the Windows 7 DVD. If you burned it yourself, try burning again at a slower speed, and possibly downloading again and burning again.
Normally if a drive is messed up, the boot will be delayed while the bios tries to sort it out. If that is not happening and your system will not boot to the DVD, I have to assume either the DVD is bad or something might be effecting your drive.
What I am thinking is the boot files are on the old drive. That drive has gone bad and keeps you from booting. Taking the old drive out would help, if the new drive had an active partition. But the Startup Repair has a very hard time making a partition active.
The more info about how your system reacts, the better. The system should boot to a bootable DVD unless a hard drive is messing it up. Taking out the old hard drive might at least eliminate that scenario and allow booting to the DVD, but the system may still not boot.