Make sure you keep the drive connected AND the XP CD in the drive even when XP says to remove the disk prior to rebooting. The key is to let it install and do its own thing with the disk inserted regardless of what it says. It will find the drive as long as you do this and the BIOS is set up to boot to the CDROM first. On the first bootup after installing the setup files, it continue the install once it bypasses the boot from CD option after 5 seconds. You should then be fine up to the point of setting the time and entering the XP key.