Had to install xp sp2 and it wouldn't recognise the sata drive, hence finding nlite and having to slipstream it on.
GB, for info, slipstreaming involves creating a boot disc with your xp on it, and a compatible cd/dvd drive inf file. Page here http://www.nliteos.com/ if you need to dig deeper.
Wurz
All of our computers are running XP (except test systems) and all have SATA drives and all but one waws installed using XP /SP1. I know there are/were issues with early AMD boards and the NVidia chipset (possibly other brands as well), but that was just compatibility issues with the SATA controller itself.
The Intel SATA controllers have always had an IDE mode where they would work with existing Intel IDE drivers.
I even managed to get the pre-SP! version of XP installed, but the problem with it was the LBA block limitation, which was increased in SP1.