there are several methods for working around it. The following link shows most of them.

If you set the password go straight to the "Forcing the Bios-CMOS to be Reset to Default Values" section where clearing the CMOS manually is explained.

That should allow you to set the optical (CD) drive as the first boot device.

Now, you have a choice of either a repair or fresh installation of Windows OR you can try for a quicker fix.

If you opt to try the quicker fix, that corrupt hal.dll message is often caused by a corrupt or improperly configured boot.ini file that points to the wrong partition. It might also be a corrupt hall file requiring the expaqnding of ntoskrnl.ex_ -- this link ought to provide the guidance you need.
Error message: "Windows could not start because of a computer disk hardware configuration problem" (yours is error message three on the page)

have fun