New 500GB HDD=Blue Screen

Ok so I'm attempting to install Windows XP on a brand new Western Digital 500GB hard drive. The exact hard drive is actually:
Western Digital Caviar SE16 WD5000AAKB 500GB 7200 RPM IDE Ultra ATA100 Hard Drive - OEM

Now the computer I'm trying to install on is an Emachines T3065 all with it's original specs. Now I tried using my original Restore disks which should ultimately put my computer back to factory defaults with XP SP1. But it didn't. It continued to act like there was no operating system and kept asking for a disk. So I brought home a CD from work with XP corporate which I was then going to activate using the serial on the side of the case, but as soon as I got to deleting the partition that was created using the eMachines restore CDs the thing Blue Screened.

I ended up taking the hard drive out and putting it into another computer and reformatting it. I put it back in the eMachines only to have the thing keep Blue Screening at the partition screen. It always happens right there and never before.

Now I have no idea what this could be, but my only idea is that it might not be compatible. The eMachines originally had a 160GB IDE/ATA. This new hard drive is IDE/ATA100. I don't really understand what that means, but I asked before buying it on Yahoo Answers if it would be compatible and I was told yes it was compatible. So what gives? Any help would be greatly appreciated. Thanks.

 

No one has any ideas here? We're debating on whether or not to send it in to Best Buy or something to get it worked out. I would really rather not do that.

 

Ok, well here is an Idea. Sometimes with older computers(not sure how old it is exactly), the mobo can only support a certain size HDD. This HDD might be too big for the computer. That could be one reason that it is blue screening.

I have seen it before in my work, so I thought that I would let you know.

 

Nah I don't think so. The computer's not that old. I couldn't find a max capacity, but I've got an older computer that was able to detect the hard drive as a slave just fine. I also don't think this has anything to do with the HDD going bad either because I was able to use it on my other computer.