no let me clarify.
steps 1-4 is in bios. After that its in windows Setup.
WHen you put in the XP CD Rom, and do the "press any key to boot from CD ROM..." you will be greeted with a blue screen.
Somewhere on the bottom on the screen will have hte words "press f6 to setup RAID or SCSI drivers" or something like that... Press F6.
After Setup loads a few things it will give u a prompt to insert the floppy disk to load the drivers for NCQ and Hotswap Capabilities (the only real difference between SATA I and SATA II)
Insert floppy, find select the proper driver (i dont know the right 1 off the top of my head)
Continue setup like any other installation. (pick hard drive, format, install etc).