USB port is working in bios but not in windows?

I have compaq presario c700 laptop.

USB ports are not working in windows.but it is working in BIOS.(e.g usb keyboard.)

I thought that it would be windows problem so I planned  to install new os. Cd drive doesn't work.so I have only option to install through usb.

When I try to install os , after I click INSTALL Button I got error "A required cd/DVD drive device driver is missing..." ..what should I do now ? 


Thanks in advance .

Note: first my all USB ports did not work suddenly .then I gave my laptop to service centre. They told that USB ports are shorted and they only made one port to function. But that too working in bios only. Pls see the error below.
http://i42.tinypic.com/242iwk2.jpg