Like seekermeister, I do not have that much experience with what XP can or cannot do when it comes to configuring a Hard Drive. I do know, in Windows 7, a drive can be cleaned using Diskpart and Windows will configure the drive normally, even though it is RAW and no volumes are present.
In XP, and I am assuming SP3, even if you try to load with AHCI enabled, it will at least try to load the Windows files, but that does not seem to be happening. So possibly, what Pauli mentions concerning the physical connections could be involved, or for some reason the drive was cleaned in such a way XP needs it to be brought part way back.
Also, I suppose, if the drive had not been cleaned sufficiently, there may still be a boot virus or something else hanging around.