If you get that error when you are at the screen for selecting a partition in windows XP, then if you have the hard-drive as master, the cable is correctly hooked up, your drive needs to be erased, reformatted.
There is a few ways of doing this, first way is to wipe the disk clean, I use a program called disk wipe you can get it here:http://www.diskwipe.org/download/DiskWipe.exe
, use this to wipe the disk clean, usually the boot information would be on the first part of the drive, so you can run a quick wipe, i usually just wipe the first 3 or 4 gigs. After that you can use windows XP again, you shouldn't need a driver for the hard-drive, but if you do, windows will give you that option, then proceed to new install, and to the partition area, the drive should show up, if it does, then you need to delete that partition, create a new partition, and reformat that partition, then click next to continue the install or follow instructions to install that os.
The other way is to hook the drive up to the same computer or another computer as a second drive, where you have windows installed on the first. Then in windows go to computer select that drive right click on it and it will say format, click format, and select quick format, then ok to format the drive, if at this stage you still don't see the drive, then you have to go to control panel, administrative tools, disk management and the drive should be visible, you should then be able to right click where it says disk o or disk 1 which ever disk, if you only have one disk hooked up then you'll see it, it is probably offline so you need to click on line, or make active, once you do that, you can right click on the hard-drive next to where it says disk, and select format which should now be allowed, format it, and then it will show up as a drive under my computer, once it does, you can then install windows on it without any problems.
Once it is formatted it will say healthy system. The reason hard-drive is not being recognized is because it isn't formatted
correctly, the above always fixed this issue, unless the hard-drive is defective, which is the other reason, and one other reason is that when windows ask for 3rd party drivers you might need the driver for that disk which when it ask for 3rd party drivers, you would put the driver in, from a disk or another drive. Hope this help's, i have ran into this issue hundreds of times, some on my own disk, it happens, but is most of the time easy correct.
Also as a tip make sure your bios is set properly for that drive, and that in your bios you can see the drive before you install windows.