On this case I suggest you to check the Intel® Smart Response Technology User Guide at the following link:
This explain exactly step by step how to configure the Intel Smart response technology
Thank you for taking the time to reply... I certainly do appreciate any and all input.
The strange thing here is that I am able to accelerate the other (storage) drive no problem. Additionally I was able to accelerate the previous system drive before it went kaput.
The new drive is a Western Digital WD5002AALX-00J37A0. It is a BRAND NEW model, mfg date June 2011 and I think its exact model/firmware may just not be supported for some strange obscure/minute reason... I am hoping someone in Intel would see this and investigate, it is a very strange issue which I tried to demonstrate in the video.
I've taken additional steps since... I have fully scanned the spindle drive for any errors, defragged it, updated to F8 Bios (the board is a Gigabyte GAZ68-UD3H-B3) which just came out a few days ago, loaded defaults in the BIOS and then carefully reset everything to the correct settings taking care to reference the Intel RST instructions.
Today I even removed the storage drive and swapped the SSD and 500GB harddrive's ports to no avail. RST detects it and attempts to accelerate it - there's every indication that it's going to work, but then it doesn't.