I think you've run into a common problem, for which there are two solutions. The original problem is the Win XP in all versions does not know how to use AHCI devices (the real device type for SATA HDD's). It requires a driver to be able to see such devices and use them. I'll give you the easy solution first, then the slightly more complicated "best" solution.
1. Put your XP Pro Install CD in your optical drive and boot directly into BIOS Setup. For many mobos this means holding down the "DEL" key while the boot process starts until it pops up the initial Setup screen. Just in case that is not right, watch the screen messages for which key you must push (hold down) to enter Setup. Once there, look for where you configure the SATA ports. Make sure yours are Enabled. Now, very close to there look for a setting for SATA Port Mode. It usually has options like IDE (or PATA) Emulation, SATA, ACHI, or RAID. Set it to IDE (or PATA) Emulation, and the BIOS will fool Win XP into thinking it is dealing with a plain old IDE drive type which Win XP fully understands and can use with no further help. Now, one more step. Look for where the Boot Priority Sequence is set. Most common way is the optical unit first, the SATA HDD second, and no other boot devices in the list. When set, Save and Exit. The machine will boot from the Install CD and be able to find an HDD it thinks is IDE, and it can use that to Install to and, ultimately, to boot from.
Be aware that doing it this way means that the BIOS is disabling a few extra features of true AHCI devices like NCQ and Hot Swap support. If that's OK with you, you're golden. However, IF you want to use ALL the features of the SATA system, the "best" procedure is to actually add in the driver for a true ACHI device at the beginning of the installation. That's option 2 below.
2. For some time, Windows Install has had a general process for adding external drivers into itself at Install time so it can be installed to and boot from a "non-standard" disk device - for example, SCSI systems or RAID arrays. You can use this to add in the driver for a SATA HDD, which is really an AHCI device. BUT Win XP Install only knows how to do this from a floppy disk. So you need to prepare two things. First, you need to have a floppy disk drive installed (at least temporarily for the Install - not needed later) in your machine, and you need to put the correct driver for your mobo on a floppy diskette ahead of time. Your mobo manual probably has a note about this, and a procedure to write the driver to a floppy for you. SOMETIMES mobo makers put both the AHCI and the RAID drivers into one driver file and label it a RAID driver. But sometimes they do keep them separate and clear. Check your mobo manual for details. Unless they use the combined driver plan, you do NOT need a RAID driver - just the one for AHCI (or SATA) devices.
OK, if you have this ready, you set things up as above - SATA port Enabled, flpooy port Enabled, Boot Priority Sequence as above, BUT change one thing. Set the SATA Port Mode to ACHI (or SATA if there is no AHCI). Put the Install CD in the optical drive, and the diskette with the driver into the floppy drive, and boot. Early in the Install process you will see a prompt to press F6 if you wish to load additional drivers. It pauses there for a while, but if you do nothing it will keep on going. If you push F6, it will enter a routine to have you load the driver you want from a floppy diskette, and then come back to offer you a chance to do another. When you have loaded all the required drivers you exit from this routine. The Install process makes that driver a "built-in" part of this particular Win XP so that, from now on, it CAN read and boot from an AHCI device. It will complete the installation smoothly, and away you go!