Go to bios setup ----> boot configuration and check that your sata drive is detected or not? if yes then select sata drive as a primary boot and rom drive as a secondary boot then save settings & start your system again. If not then you will have to replace it.
If you are using a setup disk that is not XP SP3, it needs additional drivers to see the SATA drive. You can go into the BIOS and change the drive mode from AHCI to ATA, they may work. If not, look for a XP disk with SP3 built-in.