XP doesn't handle SATA drives when you boot from said CD. Reference http://www.google.com/search?q=WD800JD
What you need are the SATA or motherboard support drivers to feed XP's installer at the proper time.
Read http://www.seagate.com/support/ts/sata/drive_setup/win2000_xp.html to see an example install.
I have a Dell XPS Gen 3 with intel pentium 4 speed 3.2 Ghz. System has a Western Digital WD800JD hard-drive. The OS is Windows XP Professionsl. This the first time I have tried to do a clean install on this system. When I purchased the PC, Windows SP1a was installed. I later added Service Pack 2. I could not slipstream the Dell OS CD. I had an older Service pack 1, Retail version that wasn't being used. I slipstreamed SP2 into SP1. Every thing worked at first. The system Booted from The CD. But, it would not recognize my hard-drive. It says that no disk is present. I tried some third party partition utilities and they would not recognize the Disk. I checked the bios and the hard-drive was recognized by the bios. The system boots from the hard-drive ok. When booted into windows, the system recognizes the hard-drive and device manager says it is working properly. I need to find out whats wrong and how I can format and install windows.