How do I install any OS on such a laptop?

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My friend has an ancient acer travelmate 4020 laptop. The cdrom drive in the laptop is not working. He wants to use the laptop as it is for as long as it lasts without spending any more money on it.

Recently his windows crashed and couldn't be repaired. So, we took out the hard disk, put it into a casing, backed up important data and formatted it.

Now, we had to install an OS, Linux or Windows. Since the laptop had no working cdrom drive and we don't have an external cdrom drive, I tried using Unetbootin. I was not able to install ubuntu 9.10 using it because it kept giving the error "/media/cdrom could not be unmounted". We couldn't install anything on it. Please suggest a method to install an OS on it. It would be better if we could install windows because my friend has not used linux at all.
 
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