I had a similar issue with a SATA drive. Is your harddrive the only SATA device you've got, or do you have other ones too?
If you have other ones, go into your BIOS and turn off all RAID controllers (just disable everything that says RAID).
Apparently Windows isn't too picky about what it uses for a RAID on SATA, and on my system it was trying to do a RAID between my HD and my CD Burner... 😱
Also, that Windows XP partition is really large, I don't know if Microsoft ever fixed those partition issues or not. Try making that a 10GB or even a 4GB partition. This will also help with computer speed. Multiple partitions = good. One Giant Partition = Bad.
But try turning off Raid, see how that goes.
Also, if your motherboard supports it, make sure that you have your drive connected to the SATA controller on your mobo, and NOT to your SATA II controllers (usually a different color.)
Windows doesn't like SATA II much without some very specialized drivers.
Creston