Can he remove Windows XP CD, when the pop-up window of requesting the driver show, and put the SATA CD Driver instead?! and when the installation finish, he puts back the Windows XP CD again?!
No, it doesn't even look for to the CD-ROM, and you can't browse which device you want to search for, it's written into the winXP setup program to search drive A: for a floppy.
The first few errors like 'Has not passed logo testing' blah blah blah is common and you should just select 'Install anyway'
As far as device error you need to make sure your cables are all nice and tight on the SATA drive and motherboard itself.
Also make sure you didn't plug in the SATA power connector AND the 4pin, you need to plug in one or the other not both. If you plug in both that can fry the drive by giving it too much juice.