Installing Windows XP on WD VelociRaptor

I would like to install Windows XP on an older machine circa from 2010. I have an unused WD VelociRaptor that I would like to use for that - it is a SATA drive. I am installing from a USB drive.

The computer loads the Windows installer, loads the main system files in the DOS-like environment and when the text in the lower part of the screen says "Starting Windows", it gives me a BSOD 0x0000007B. I know this is likely related to the drive - maybe I just need to load some specific drivers for it, but I have been unable to find out what to do anywhere.

Can anyone of you remember how you solved this in the past?

EDIT: The drive is not faulty, I have successfully installed Windows 7 on it before. I have tried loading a SATA driver supplied with the motherboard via a USB floppy drive and although that does get rid of the BSOD, I still cannot see the drive when choosing a location for the install (I can only see the flashdrive from where the installer is running).