Installing XP on SATA dive

[Spider]

Ive just bought a 5150c from Dell which came with Windows MCE. Im tired of all the clutter and crap they ship on their PC's so went to format and reinstall but when I boot from the windows CD it gets to the part where it detects the hard drive, finds four "unrecognised partitions" and if I press any key to try and install the software I get a BSOD with the message:

PAGE_FAULT_IN_NON_PAGED_AREA

Ive never installed onto a SATA HDD before, are there any special requirements?

Any ideas what's going on?

Thanks