Update, after doing a multitude of trial and error (which will be listed at the bottom), i got it past the installation,through the reboot and on to configuring pf sense on my main computer. The last method i tried was placing the hard-drive into slave mode while having the disk reader as the master on the first channel of the motherboards pata controller. 1*
I feel really stupid and confused on why or how this worked. I do not believe that it has anything to do with the jumpers on the devices (master, slave) nor do i believe that the access mode (LBA) has anything do do with it (maybe) because I tried multiple combinations of everything.
on a side note: I switched installation dvds and burnt myself a copy of pfsense 2.1.4 i386, which did not also worked untill I did the change above.
The changes that i made were (not in chronological order, also the ones i can remember)
reformatting and partitioning the drive via FreeBSD 8.3 i386 dvd (Errors when installing freebsd but partition and formats remained)
switching: Pata cables, sata and pata Harddrive, cd/dvd burners, memory
turning off: ps/2 mouse, onboard 1394, Serial ports, Parralel ports ,usb legacy mode support(which was turned back on)
installing windows xp(which the machine Had), and updating Bios as well as partitioning the disk
attempted to use pfsense live cd shell and try to learn fdisk to get a hint as to what the problem was
edit: 1* as opposed to having both hard drive and disk reader be the master of their respective pata channels : hdd = channel 2 , Disk = channel 1