!!!!!!!!!! Now the bios is registering both.
Okay this is how it happened.
Switched Hdd to IDE 2 connector on mobo, started it up nothing registered.
Then went into bios, changed Parallel ATA: from Primary to both.
Rebooted, then it showed in bios. Then I connected cd/dvd-rom to IDE 1 connector and then rebooted and now it shows in the bios.
IDE Drive 0 CD/DVD-ROM
IDE Drive 1 Not installed
IDE Drive 2 60000 MB
I guess they could be connected in the reverse order on mobo, it was the bios setting that was screwing everything up. So now I just boot from the cd and reinstall xp? Thank you so much for your help!!!!!!