Dell forum: Vostro 200 desktop not able to handle two 1.5tb seagate hdd

I have a Dell Vostro 200 desktop having Intel Dual Core processor and 2GB ram. It initially came with 500GB hard drive and worked fine. I added a Seagate 1.5tb hard drive (Barracuda 7200.11 SATA 3Gb/s 1.5-TB Hard Drive) and the machine + OS was working fine.
The problem started when I got my 2nd seagate 1.5tb hard drive. My plan was to replace the 500GB western digital drive that initially came with the system. My dream configuration was two 1.5tb hard drives and 2 DVD roms.
I removed the 500gb after copying the data and connected the two 1.5tb hard drives and tried to boot from the 1st 1.5tb which had windows XP on it. The windows boot screen splashed and after 5-10 minutes I got a blue screen saying that system encountered a big error. I repeated the procedure several times I got the same thing again and again
I tried using some boot discs. While using Ubuntu I can see both the 1.5tb drives with the data in it. But when I booted it with mini windows xp boot cd, the computer won't even go from that option in the boot disc menu.
I tried booting the CD with individual drives and they work fine most of the times.
I think it hangs while trying to boot the mini windows xp
I tried to reinstall windows by booting from windows xp install CD, but the install disc won't even run to the beginning point. It makes some sound and stop after that. All I get is a black screen with no text in it.
I tried using Windows VISTA boot cd and it came to the hard drive selection screen after an hour. (Such a long time). Also the screen to screen navigation is very slow (sometimes takes 5 minutes to move from one screen to another).
I made sure that my BIOS is the latest version available from dell. I also updated the chipset drivers for the system so that everything is upto date.
What should I do in order to make my system work with two 1.5tb hard drives on widows xp. Please help with your suggestion/advice
I appreciate your help