Need computer help bad

Ok the computer loads up to the point where the screen comes on and you pick the account you want to use. But then after that nothing…I can see the desktop but no taskbar ever loads and no icons show up. Now I was just going to go ahead a reload windowsXP pro. So I place the XP cd in the computer and set the BIOS to boot from cd. I get the standard XP load up screen. But I then get an error that say no hard drive is present. Does that mean the hard drive is dead on this computer? Are there any tricks I can use to diagnose this computer…any help at all is appreciated.