Craig, I appreciate your input.
If you read my posts above I wrote that I already tried all the possible BIOS options, sorry I misspelled it second time, it is acpi.sys, and yes you are right it is Advanced Configuration and Power Interface.
BIOS flash was one the first things I did and verified that it is the current version.
See thing is any other OS CD's gets installed just fine but only Windows Server 2008 x86 version, and even Windows Server 2008 x64 version would install but x86, I know it is really weird. But I didnt have time to mess with it anymore.
My solution was to get another desktop from my buddy and setup my lab with Windows Server 2008 and ISA 2006 testing.
Thanks all.