Completely disconnect the original drive. Make sure the other drive is jumpered as Master then attach it to the last connector on the cable.
Now power up and you get a boot error about no bootable drive or boot sector missing, something.
If that happens that says the original drive is defective or is not bootable. If you have the exact same symptoms then the hard drive is not the problem and you have to look elsewhere for the cause. The you start removing parts as I mentioned previously.
This could turn out to be a defective mother board, no way to tell yet.
Re: Booting the recovery disc. You need to make sure BIOS is setup so that the CD drive is the first bootable device, it must be ahead of the hard drive.