1. It's a SATA drive and the setup of your version of Windows XP doesn't support SATA-drives without you offering it the SATA-driver on a diskette. Press F6 when asked for RAID and put that diskette in that came with the laptop.
2. I tried to lookup the specs. I couldn't find if it was SATA or IDE. But I found one at amazon (out of stock) that had a 80GB hard disk. So it could well be that it came with one of earlier versions of XP that don't support disks > 127 GB. In that case, you can expect troubles if your new hard disk is greater.
3. The motherboard is failing.
If it's #1 (most likely, if it's indeed the old disk that failed), the HP supplied recovery media should work, even when a stock XP disk doesn't.
If it's #2, try a disk that has the same size. Using the HP recovery media won't harm at all.
If it's #3 it's time for a new laptop.
You didn't provide all details, that's why not everything I mentioned applies to you.
I recently purchased a Western Digital laptop hard drive for my HP Presario X1015US laptop - I know it is old - and got the part where it said : Setup did not find any hard disk drives installed on my computer. I have tried two new drives now and it is simply not getting past this point. I have gone in to the bios to ensure it is booting from Windows Operating System CD and it is still not finding. HP told me I have to check motherboard? Is there anything else I can do or am I going to need to buy a new laptop (the old hard drive is no longer working...started making weird noise).
Any advise would be appreciated.