This error occurs because the original Windows XP installation CDs did not include native drivers for controllers running in AHCI (Advanced Host Controller Interface) mode. Without these drivers, Setup cannot see your hard drive.
Finding a reliable Windows XP ISO with AHCI support is the gateway to running Microsoft’s most durable OS on modern-ish hardware. Whether you download a pre-built Integral Edition or roll your own with nLite, the key is ensuring the text-mode drivers match your storage controller. Windows Xp Sata Ahci Iso Download