I don't have a SATA drive. SATA is supposed to be "transparent", they say, which means it works exactly like IDE in software, regardless of the hardware.
So you need tha SATA controller set to boot in the BIOS if you have more than one controller. Otherwise, the boot drive is the first hard drive the BIOS finds in its search sequence.
The XP setup CD will offer to partition and format the drive, so that is the easiest way. If the controller is a second controller, like SI, Promise and Highpoint usually are, you need to press F6 when the XP setup program asks you to, so you can load a driver from a floppy. (which means you have to have the driver on a floppy.) Usually you get a setup floppy and CD from the drive manufacturer in the box with the HD, which is also very easy, and usually it can copy an old drive to the new one, at least it will if you don't have any linux partitions. All the manufacturers have this type of utility on their site for download if you didn't get it.
How many partitions? I like a lot. I've been using 7 or 8 for many years (besides the linux partitions.) The main reason: it takes too long to copy, check, and defragment huge partitions. The other reason: I have several backup OS installations for emergencies and testing new things. I don't have to risk my main OS to check out stuff and experiment, plus I need a third for simple recovery when the second bites the dust.
Most people use one partition. It's simple and all of the drive space is always available for any purpose.
Seems to me that most heavy duty HD users have two or three partitions. It makes things easier for backups if you separate the OS from the data and applications. The problem here is that you always have to use the option when installing programs for a different location than the default. That is confusing to general users, plus the setup programs sometimes screw it up.