I'd say that your problems are going to be due to the following:
1. Incompatible firmware on the hard drive.
2. Bad text-mode drivers (F6) being used for installation.
Where you using an IDE hard drive with this motherboard prior to using the SATA hard drive?
What version of XP. You could try to create a slipstreamed CD with all the Service Packs and updates with something like nLite. It's fairly straight forward.
Thanks guys for taking your time to help me out.
The issue is resolved when I install Windows XP with builtin SP2. Earlier I was trying with XP base release.
Thats the magic.
Thanks again for all you guys.