SATA cannot be configured as Master/Slave. Only a single device on each SATA port.
127GB or 137GB is a limitation of the operating system or motherboard not being compatible with 48 bit LBA. Since you already have a 200GB drive partitioned and formatted and you OS recognises it, this would appear that your motherboard is not the problem and SP1 or higher was applied after the OS was installed.
http://support.microsoft.com/kb/303013