Oem disc auto partions any hdd as 16GB os fat 32/D:\\ drive NTFS raw. The Sony OEM disc(s) are pre sp1.
What steps do I take to install and get the full 200 GB to bea recoginized correctly?
It's (probably) because you have a system restore disk not a Windows XP install disk.
You can either use the disk you have then use something like PartitionMagic (or PartedMagic) to move/expand the partitions; or buy an XP install disk.