first off all you must realize you are using a sata hard drive which is connected to a sata controller >>>>> the windows CD doesnt have any sata controllers drivers in your SP-1 version
so you need to enter the bios / change the sata controller to IDE mode / then it will behave like an IDE drive and the OS will install >>>> after the OS is installed then install the motherboard chipset drivers, after that you can re-enter the bios and set your sata controller back to sata mode
on the topic of win xp install >>>>> I would seroisuly consider slipstreaming service pack 3 into your windows cd
a sp-1 only cd is VERY outdated
google search for a tutorial on
slipstreaming using Nlite