one more question, can i buy a upgrade version of XP Home and then have it verify my windows 98 disk that came with my old computer? or do i need to buy the full version?
Yes. And if you have S-ATA drivers then you need to be ready to hit F6 when it asks you if you want to install 3rd party drivers for RAID/SATA/SCSI.
Then when it prompts you insert the floppy and select the appropriate driver (trial and error is fine).
That's the only complication with SATA hard drives, other than that, just what he said.
I did that myself with my Seagate disc, but upon installing Windows XP it partitioned my hard drive, so I am not sure if you need to.
Probably should just to be safe w/ the hard drive CD.