It is very difficult to comment on this, as this is an old board which have reached its end of life a few years ago. I dont think that a one TB drive has been used by any users when the board was still under the support.
I know that there was a server which uses the ICH5R same like the desktop board you are using.
I cannot see any tested 1 tb drive in the list.
But this does not mean that it may not work.
I would imagine that you are using the Windows XP with the latest Service Pack integrated. If not, try to make new windows CD using Nlite with the latest SP.
Have you tried a different OS CD or different Windows like Vista as a test?
The drive is configured as IDE in the bios and native mode. Have you tried to set it as legacy?
All the best,