|Yes, you need to install the SATA controller drivers. You have two different SATA controllers. |
SATA1 Controlled by JMicron JMB361
Controlled by Intel ICH8
I am assuming you used SATA 1 port for your 160GB SATA drive. That controller is running your 160 in an IDE compatibility mode.
Get the SATA drivers from the manufacturers link below.
Read the information on the first screen there. MSI has a live update, which may be easier for you to use.
Disconnect the 1TB SATA until after you install the drivers.