OK I am a touch confused... you shouldn't need any SATA drivers at all with Windows 7 - XP SP2 could handle SATA HDDs, 7 definitely can. Also, it seems you haven't even started the Windows installation yet so the HDD is not the issue.
Are you positive the Windows DVD works? You can run it inside Windows, so load it up on another computer and see if runs OK. If not you probably have a broken DVD. Are you also using the right disc? The 64bit DVD wont work on a 32bit computer. I'd be surprised if this was the problem as almost any computer from the last few years should be 64 bit.
You can also try booting the DVD in another computer and see if it runs the setup. The setup should make absolutely no changes to your computer [it can't until you choose which HDD you want and before that screen you know if it works or not!]. If you see it doing stuff - ie says "Loading Setup Files" or similar you know the DVD works fine. Although it wont make changes I will cover my arse anyway and say At Your Own Risk!