|IF you are running two separate installations of Windows (of which i am still not convinced), each installation needs to be completed with updated video drivers and directX files. Just because the Windows installation on the IDE drive lets you run a certain software does not mean that the other Windows installation on the SATA drive is setup the same way.|
Unplug the SATA drive so we KNOW you are ONLY dealing with the XP install on the IDE drive. Boot to the XP installation, go to Start, Run, and type "dxdiag" and click OK. The first tab (System) shows you information about your system, and at the bottom there should be a line that says "DirectX Version: DirectX 9.0c (4.09.000.0904)" or something like that. That will tell you definitively what version of DirectX is installed on your IDE Windows installation.
If the game works in one OS but not in another with the same hardware config, then there is a problem with the drivers or the software on the OS where the game doesn't work. Boot to the IDE OS and make sure video drivers and DirectX are updated.