1.) Windows 2000 can't recognize a hard drive larger than 137GB natively. In order to get Windows to recognize larger drives you need at least SP3. Have you installed the latest service packs?

2.) Depending on your current BIOS version, you may need an update in order for your computer to correctly recognize the full 250GB. During boot a BIOS screen should flash...press the designated key to enter BIOS/setup, and write down what version you have...that will aid in the search for an upgrade, if one's available.

3.) You can click here for a registry tweak to resolve the issue of Windows not recognizing 138GB+ drives. Just be careful when modifying the registry.

4.) Partitioning your hard drive into a couple of chunks should solve the problem as well. It's up to you how you'd like to do this.

Hope this helps,
John