many laptops have a protection that does not let you install a new OS to it's hard drive. some protection to make sure tweakers like us don't screw up the factory installation.
either that, or the HDD is a native SATA which is not supported by earlier versions of windows. Go into bios and set it to PATA/IDE mode and it should work. Otherwise try adding the SATA support to your install disk somehow. (not sure how to do that, but it required making a new disk with the driver files)