Installing Windows XP/7 and computer is saying no HD can be detected

[cap223]

I have a Gateway MX6920 Notebook which I wanted to upgrade the Hard disk drive to 320GB. I bought a WD Scorpio Black 320GB drive and swapped it into the laptop and tried to install Windows 7. During install I received an error
status: 0xc00000e9
info: An unexpected I/O error has occured
"Windows had encountered a problem communicating with a device connected to your computer. This error can be caused by unplugging a removable storage device such as an external USB drive..."
I also attempted to install Windows XP but after choosing to do a fresh install it states that there is no Hard disk drive detected by the system. HD is recognized in BIOS however (BIOS version 77.08) and is recognized on another laptop in windows where I was able to format it.

 

[r_manic]

How exactly did you connect the hard disk your laptop?

 

[cap223]

I openned the hard drive case from underneath, unscrewed the HDD from the case and screwed the new on in. Then I just reconnected everything and proceeded.