Ultraman,
I got mine to work! You need to make a new installation disk. Here's what I did: You will need to find the driver for your SATA controller and download it. Try going to Manufactures site first.( if you are having trouble figuring what driver, download a program called Everest Ultimate a free download you will find through google, it will give you the info to help find the driver)
First make sure you have enough space to make a copy of XP onto your computer, (it will fit on a CD-r so its less than 700mb)
Then you will need to copy your XP disk using a program called Nlite (free from cnet)
When you open Nlite you will be asked to provide location for the Windows installation package, insert your XP disk, and select drive letter in the application, when the warning pops up click ok and select your destination folder, the app will start copying XP. When finished it will display some version info. Next click next until (twice I believe)you get to screen that gives you the options of Integrate, Remove, Setup, and Create, you will need integrate, then select drivers and click next. Now you will click insert and select multiple drive folder option from the drop down menu, select the folder where you downloaded the SATA drivers. Select the containing directory and click next. You will get a list of available driver(s) select it/them and click next. Now the program will ask for permission to start the integration process, choose yes and wait for the drivers to be inserted into the installation package. You will now have the driver in XP.
Open nlite again, make sure your XP destination folder is selected, click next. select "last session" preset and click next. Now choose Bootable ISO. In the next window make sure mode is set to "create image" and click make ISO. A destination folder is required for the ISO image to be saved. Once saving process is complete you can burn the ISO folder onto CD-R ( will need an ISO burner, 7 has one built in, or go to Cnet) This is you new and improved XP install disk, you should now be able to install XP.
I hope this works for you, repost if any of my instructions are unclear.