|There are TWO possible issues. Both relate to 48 bit LBA compliance. Both the motherboard BIOS and the OS (operating system) must be 48 bit LBA compliant. |
As you noted the original release of WinXP was NOT. But you didn't identify weather or not your BIOS is 48 bit LBA compliant.
Now that you already have a hard drive larger than 127/137GB capacity installed it is easy to determine.
Simply watch the POST screens at start up to verify that the BIOS is identifying the drive by BOTH the model number and the FULL capacity.
If the BIOS show a capacity in the 127/137GB range then you need to install an add in controller card to use that 500GB drive.
If however it is identified properly then you just didn't delete the old partitions and create new ones.