I think your problem also lies in the fact that you need to install the SATA drivers for your computer so as to be able to read the harddrive...

Download them from the manufacturer's site for XP operating system....if they don't show for XP then you may need to google for them....

if you use a floppy then you will need to use the "make Disc" program to create the floppy disc....if not then download the exe files open and follow instructions to burn them to CD.

Install the GAG program. It will prompt you as to what partition you want to install the new operating system to...(it hides vista till complete)use the xp installation disc and follow the prompts closely. Just after "Press...to Boot to CD" it will prompt you to install third party drivers by "Press F6" do that and use the CD or Floppy that you made. The set-up files will then be able to see your harddrive and will continue installation.