The ubuntu forums was the first place I went to ask. I got no reply. Found a thread about it, none of the suggestions worked. The thing is that even selecting to check the cd gives the same error, so it's an IO problem. Can't do much about that other than switching computers. I had already tried the kernel flags. noapic noioapic apic=off ioapic=off. nothing. I'm afraid that POS PC is stuck with a POS OS. Btw, I tried a live cd with a 2.6.12 kernel distro and appearently had the same problem. Nothing loaded.
And about the OS blocking BIOS thing. It even loaded an XP disk, a pirate XP disk, windows 98, windows ME. So I guess if it is that, the BIOS does have it's preference.