|Get rid of cable select. I don't know where you got those instructions from but it is not correct. |
Make the new E drive Master and the old C drive Slave and set the first IDE drive as the boot drive in the BIOS. Reboot and is should boot from the 160 gb drive only now it will be drive C: and the old drive will be E: providing the clone was done correctly and not just a copy.
If you must use cable select, and I wouldn't recommend it, you need to swap the plugs around between the drives. That may involve swapping the drives in their respective bays as well to allow the cable to fit. A lot easier to just move a couple of jumpers.