|XP will detect the SATA controller as an IDE compatible device, but you must install the drivers for the Silicon Image SiI 3512 SATA Raid Controller in order for it be be recognized as a SATA controller - they're not built into XP - did you?|
If there are both non RAID and RAID drivers, install the RAID drivers - they include support for non RAID use, you're not required to set up a RAID array (you need at least two SATA drives for that) , and the non RAID drivers probably won't work.
Your new SATA drive has no data on it.
You have to go into Disk Management, make at least one partition, and format it.
Setup defaults to making only one partition on a hard drive.
The problem with that is if you ever need to re-load Windows from scratch, you lose everything on the partition Windows was installed on, and when you have only partition on the hard drive, that's everything on the drive - unless you copy the data you don't want to lose to elsewhere BEFORE you install Windows from scratch (most people don't bother, and lose all their data) .
If you're installing XP from a regular CD, it's recommended you make at least TWO partitions on the drive.
How to make more than one partition on a hard drive, when you're installing Windows on a blank hard drive, or when you are deleting the existing partition(s) on a hard drive before you run Setup .....
See Response 3:
Similar applies in Disk Management even if you don't run Setup
In order to be able to boot fron a SATA drive connected to the Silicon Image SiI 3512 SATA Raid Controller, there must be an operating system installed on the drive, and you need to be able to select SCSI in the Boot Order or similar settings in the bios Setup and place that before any hard drive.
(XP installs SCSI device support for SATA controllers).