First off, I've not worked much on laptops, I'm a desktop man lol. You can build a desktop, you can't really build a laptop however because most of the stuff is proprietary. Having said that. I found out how to slide your Disc drive out so you can see if it's connected:
HERE
I found more info on replacing it on another website. However in the thread I will link, someone suggests getting a USB optical drive. Do you know anyone that has one you can borrow? That would be a good trouble shooting tool if you dod. Borrow the optical drive and plug it in. Go into your BIOS and enable the USB as a boot device, reboot with the install disc in the USB optical drive and see if it works. If it does then you know you have a bad optical drive and you can choose either to replace it (probably have to get it from Dell as it seems to be a proprietary piece of hardware) or get a USB optical drive.
Here is that link
One question did you select "format the hard drive" when you tried to install Vista last time? If not, maybe clean the disc, pop it back in and try it again only format the HDD. Make sure you format the whole thing, including partitions (I think a window pops up asking you if you want to save the partition). Try that if you didn't format before fiddling with the optical drive.
EDIT: About the error code. I'm surprised your googling didn't point to the optical drive. When I googled it that's what it mostly pointed to. Let me see if I can find the links again............
EDIT II: Here are two links the first points to the drive, the second to the disc. The most of the rest of the results that came up applied either to the beta or RC version of Vista, or the for an upgrade version of Vista. Neither case was applicable to your situation. Also, in most of the cases I found dealing with the beta and RC, the problem was the disc. Before I post the links, I have another question. Do you know anyone that purchased a retail version of the same Vista as you are running (IE: Basic, Home Premium, 32 or 64 bit, or Ultimate). If so try their disc. You of course will ahve to use YOUR validation code not theirs. Also note that the odds are that you will have to call Vista and tell them that you replaced the HDD and had to re-install to get them to manually activate it. I'd say the chances are like 40-60 that it won't automatically re activate. LOL I had to re-install Vista MANY times when I built this computer. I called them so often they were asking how my family was before I finally got it right...........
optical drive problem
Disc problem