Make sure your laptop is setup to boot from CD, as 1st boot device. If it starts to load the CD recovery disc or similar then you know the CD drive works. If upon trying to install on HD or still doesn't see one, then the HD is bad. The other half of this is the mtrbd. it connects to include any cabling. These HDs don't last forever and it appears it seems since it can't find a HD to work with it displays that error. I would try another HD if available.
Also, safe mode won't work as that's at a level where it requires the HD. Again it appears to be a bad HD. If you know the HD maker, then visit the support website and get the diags to test the HD. Alas, if upon initial boot-up, the bios should show a HD present, what does it display. Access the bios area as well to best see this action. If nothing, then besides the HD being bad, is the mtrbd.. I would reset several times the cabling and clean contacts and test again. if this laptop had been running "hot" it may have succumbed to heat damage.
You could also remove laptop HD and see if its seen on a desktop with proper connections as 2nd HD or mount in ext. USB case.