Epic phail....lol. jk
Just guessing your os is hosed. The drive from your old system is rebooting because of drivers for a different system. A repair install probably won't work, since the os you're installing probably doesn't match (service pack level, oem or retail) the os that was originally installed.
So, I'd do a clean install on the drive from the old system to see how things go. This way, you at least will leave the first drive intact so you can add it later as a data drive and pull whatever off you want or need. (provided the hd didn't die)
Set your bios to boot to cd, and you're off.