1- Update your BIOS
2- Plug your SATA drive directly in the SATA port of your mobo (not the converter, no point in installing a SATA when using converter)
3- Check in your BIOS if it detect your SATA drive and if the SATA drive you connected your drive is enabled
4- If you have a SP2 WinXP disc, it will probably detect your hd without problem, if not, use the sata driver disk.
Also check if the hd is correctly connected to the powersupply. No jumper are needed on your sata drive too, there's no master/slave crap on sata drives.
You could also burn a diagnostic CD for your hard drive, **** happen some time!