To a SATA hard drive of 500GB does fail. SATA, and drives over 127GB require the CD to be XP SP3 (home or pro).
There also can be issues with that much RAM so rather than duplicate all that I'll stop at the first item in your post that we know doesn't work.
Ive been asked to try to diagnose a problem with a coworkers computer. Its a Dell XPS 630i, CPU E8200. WD 500 hard drive. 2g memory (patriot) OS XP Pro SP3
When I first booted the machine I received an error message that said it could not load system32\drivers\nvgts.sys
It said to run the setup CD and do a repair. Of course Dell didnt issue a XP disk. SO I called them. They said for $22 they'd send a repair disk. Then they would have to "walk" me through the process for another $49.
SO, I figured I'd try to do a clean install of XP Pro.
I made the optical drive the 1st drive for booting, and after going through the normal loading of basic controller files, I get a screen that tells me:
A problem has been detected and Windows has been shut down to prevent damage to the computer.
If this is the first time you have seen this error message reboot,
(I rebooted several times, same message)
Then it goes on to tell me to check for viruses, remove any newly installed hard drives or hard drive controllers and to see if the hard drive is configured properly.
I did all of that. I even changed out the SATA cable thinking it may be bad.
I felt the hard drive while the machine is booting and I am not feeling anything that would indicate that the hard drive is even working.
Before I rush out and replace the hard drive I thought I'd seek opinions on this issue here.