1. The computer should boot to the C drive if there's no media in the drives.
2. Not sure. Probably.
3. The computer still recognizes the HD. If you reformat a HD and you boot the computer without bootable media, it will just say "No Operating System", or, in your case, "missing NTLDR". The CD has to be bootable, I don't believe burning a copy of the files in Windows makes it bootable...
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