You might try going into BIOS and checking the settings for the hard drive. With a DELL you may have two settings, one for the primary drive 1 and one for primary drive 0. If so, try setting the Primary Hard Drive 1 to 'OFF' instead of 'AUTO'. Then, reboot and see if it works.
I also own a DELL and had a similar problem. I had just purchased a new DVD burner since a CD burner is all that came with my DELL. When I installed the DVD burner I, too, got the message, "Primary hard disk drive 1 not found. Press the F1 key to continue. Press the F2 key to run the setup...
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