The problem you are experiencing is probably down to the jump settings of the hard disk itself. When you purchase a new hard disk, there are a set of pins on the disk that need to be arranged according to how you will use the disk in your machine.
The common configurations are Slave, Master or Cable Select.
Seeing as the spec you listed only has one hard disk, i'm assuming you plan on using only one hard disk in the machine. If this is the case, take a look at the following site, and follow the instructions to set the disk as Master.
http://www.maxtor.com/_files/maxtor/en_us/documentation/jumper_settings/style_a1.htm
The diagram shows an ATA disk, but i'm sure the jumper pattern is the same for the SATA versions.
Ensure that the SATA disk is connected to the moterboard at the socket labelled SATA0 (or the lowest possible SATA socket). Now in the BIOS, make sure that the four channels in the IDE configuration are not disabled.
Now when you boot the machine, it should pick up the hard disk, but may give you the 'Invalid boot disk' message. This is ok, it usually just says this when there is no operationg system on the drive.
Stick in the XP CD, make sure the BIOS is set to boot the CD-ROM drive before any hard disks, Restart, and the XP setup should start.
Hope this helps, let me know if you have any probs.