Sometimes its better to be lucky than good...
While I was trying to get the darn thing to boot from the WD diagnostic CD, I noticed that the boot order in the bios was different than what shows up on the boot screen (don't ask me how that is or even where the second one is coming from.

- I access it by pressing F9 during startup.
Anyway, in the bios it appeared that it was trying to boot from "Another Device". Once I reshuffled the order to make the proper HD first in the list - all is well.
I must have screwed it up in the first place but I sure don't remember doing so...
Anyway, consider this one solved.
Many thanks Doby - without you idea I might never got to the solution.
yustr
__________________
If there are lawyers or politicians involved, logic may be a very poor tool for reaching a conclusion.