I dunno that board personally, but if you look up on Asus website, look at that board, check it has 48bit LBA support - that board will support your >137GB hdd.
Check the BIOS revision you have versus the latest downloadable one on the website.
You may or may not have a problem with xp after that - only you can try it.
SP2 has fixed it.
What is the exact problem you have with it? I know it doesn't suit everybody with existing builds, but:
If you install it as part of the operating system, ie, straight after installing windows, then it should minimize the chances of something going ape.