By your post,I am not all to clear on what you are trying to do here as far as setup. If you want to use the old drive as storage, make sure the jumpers are set to slave, you have it on the correct IDE cable, Primary slave ribbon? The first ribbon is nearest to the edge of the MB , primary. The second is innermost next to it, secondary. Hard drive 1 IDE0 on top,primary, IDE1 slave, under on primary. Secondary, cd\dvd drives. Jumpers should be set to master on new drive, slave on old drive. Use auto detection from CMOS, do not set it to boot from IDE1, just IDE0. You can boot up to the new drive, assuming you even have an OS on your new drive, then access Windows disk management and delete the old drive's partition, reformat to NTFS (usually) and use it as storage. It should be drive D: and don't forget, once formatted, deleted, you will lose all info on the old drive.

Paul