XP Pro fresh install problems

HELP! I'm trying to install XP Pro on an older Dell machine with a new Maxtor 320GB ATA 100 drive. I connected the drive and it tests out and formats with the Maxtor sw util. I think boot the XP CD, it sees the disk, partitions it (with a 300GB partition and an 8GB partition ??). I formatted the drive (both quick and full), the XP CD installs the files, and then re-boots. When it reboots, it doesn't see the primary drive. (I did change BIOS setting). When I hit F1 to continue it gives me "Disk Read Error".

Can you tell me what I'm doing wrong? Or at least what is happening?
Thanks