Either get the drivers for it or go into bios and disable SATA (set it to IDE compatability mode) and install. Once thats done, download and install SP2 and install it. When you do that, go back into bios and re enable SATA support.
MicroBell posted on this in the Hardware Zone. Includes some info on installing Windows on a SATA hard drive. Also includes RAID information, so you will have to read through it for your information.