Three thoughts after reading through:
1. Regarding setting jumpers on the old IDE drive, I'm sure you should set it to Master (or, Master with No Slave Present, if that's an option). ANY IDE port MUST have a Master device on the port to work. The adapter you have creates an IDE port from a SATA port, so it must have a Master.
2. Power was mentioned. Any IDE HDD needs two connections to it: a 40-pin data connector and a 4-pin Molex power supply from the PSU. The adapter you got provides the data connection. But you must also provide the power connection. Maybe you are expected to provide it yourself by using a 4-pin Molex output from the PSU (it's about ¾" wide with four holes in a straight line), or maybe the adapter came with a small...