Sooooo.....windows 7 should install just fine with the new mobo using IDE settings?
It should. A lot of motherboards have "IDE", "AHCI" and "RAID" for the disk controller - if possible change it to "AHCI" (Advanced Host Controller Interface) mode just prior to installing Windows 7. That's the "native" mode for SATA drives and it enables some features such as command queuing that IDE doesn't support.
I'd also advise you to disconnect ALL OTHER DRIVES except the drive your installing onto and the optical drive you're installing from. Windows 7 will create a 100MB "System Reserved" partition to boot from, and if there is any space available on other drives then it will create it on one of those. Most people prefer that the system boot from the drive that the OS is installed on.