I also have run up against this issue, rarely, in the past with HP workstations and their optical drives. It turns out some of the ODs have been old SATA versions that needed a firmware update an then could work with the drives included on the Microsoft DVD. In other cases the install could proceed by swapping in a spare SATA optical drive that was "known good" for installing from the DVD. To my recollection I did not ever see this issue with IDE optical drives, so that would be another workaround.... the drivers for those always seemed to be on the DVD and just work.
I think your situation is a bit different.... your OD is too new to have drivers on that Microsoft DVD which was mastered years ago. HP may issue a firmware update to correct that.... look for one. A great workaround is to try an external USB-attached optical drive... the drivers for the USB 2.0 interface always seem to be there on the DVD.
An analogous situation that may help you see how this could happen..... some newer workstations with only USB3 ports are tough to install onto from the W7 DVD because the USB3 drivers did not exist when the DVD was mastered. In those cases I use PS2 keyboard and mouse, or the USB2 instead of USB3 ports if they are available (black instead of the USB3 blue ports). Plug your external USB2 drive into a black port, and make sure your BIOS settings are set to allow boot from USB.
Let us know what ended up working for you......