Confused....??

You don't need to change the settings on your IDE HDD or DVD-Ram, leave it as is now.
The new drive is SATA and as such does not require any change of settings, "ALL" SATA drives are master. To make the SATA drive first to bootup, you change the boot drive order in bios.
"i want to use my previous 80-GB IDE along with the new 1-TB sata drive
so that the new drive becomes master and the old one becomes slave"
If you mean you wish to boot from the new drive, you will first have to either install your OS on it, or clone the current one over to the new drive.
WD & Seagate provide free tools to do the job, I don't know about others. Or you can get free macrium for personal use.
http://www.macrium.com/reflectfree.asp

thanks a lot for your kind response. i would just like to put up one last query that is if i set the priority of the new 1-TB sata drive top in the boot device priority list then won't there be any kind of issues or problems while installing the Win-xp from my DVD-RAM drive which is an IDE device during boot time....??        

no problem but you'll have to enable the boot menu when ready to install by pressing f8, F11 or whatever your board requires. Then select the cd rom drive as boot device.