You have a dead hard drive.
Replacing the disk drive is only half of the problem. You have to restore the firmware to the drive from a working rave arc or the system will not recognize the drive. I have not yet been able to find a copy of the firmware posted on the internet for either version of the rave arc (2.5 or 5.0).
I have a player with the same display and it has a dead drive. I have read from many others that they have the same problem. The company that produced the player is out of business so there will be no help from there.
Steve
December 2006