Werty, download and install HDTach 2.61, and do a read-test and benchmark your drive. Is the entire graph a fairly-even line, around 3.3MB/sec? If so, then even if Device Manager says that you have DMA enabled, it's wrong, you are running in PIO mode 0. This can happen if Windows' detects too many errors on the disk, it will ratchet the speed down to PIO mode. I somehow suspect that this might be happening.
If, however, the graph starts at a higher number, say around 10-15MB/s, and then gently sort of slopes down to some lower number, say 3-6MB/s, them perhaps the drive is just somewhat slow, especially when copying a file between two spots on the HD.
I've seen Celeron 1Ghz+ machines, running WinXP with a 20GB WD ATA-66 or ATA-100 HD, with much higher disk performance than that, which is why I suspect something is going on there.
Are you using the proper cable (40-pin 80-wire ATA-66/100/133 cable)? Do you have any other drives attached to the same IDE cable/port?