The BIOS is working. It is able to load UNDI (whatever that is) and the network card, then fails to find a bootable drive, because the hard drive does not respond to BIOS. Then it recognizes the failure and tries again. If there were a bootable USB drive installed it would boot to that. Might have to set BIOS to boot to USB, but it should try everything on the list before giving up. I may have stopped trying after it sensed error on HD. In that case, you have to change the boot device order in BIOS, so that it will try the USB drive before it tries the broken HD and gets stuck.
You might want to reseat the hard drive connections by removing and inserting it a couple times to clean the contact pins. Very unlikely to help, but the controller did suggest check cable, so worth a shot.
Newegg has drives for $50, and Windows 7 for $100.