Once you get a SATA drive working correctly with your motherboard, they are no different than working with an IDE drive (in fact, they are easier).
Examine your BIOS and make sure you have the drive setup to be primary boot, and that your SATA controller is ON by default.
If you're trying to just wipe the drive and reinstall WinXp, don't bother with anything else. Just throw in the CD, reboot, hit any key to boot from the CD, and then go through the steps to do a full reinstall with HDD reformat.
If that is where you're getting stuck, it probably means that the CD you have doesn't have the SATA boot drivers on it. What you'll have to do instead is create a set of XP boot floppies (available on the web from Microsoft) and add the SATA drivers to the boot driver list. (Since it's been a while, someone else will have to arse themselves to help you with that if you don't know how already. Sorry.)
Anyway, that should get you going. Hope it helps.