Yes that's correct I need to install it onto the drive. It's the first step i was taking after plugging it in. if the jumper wasn't in the right place my computer wouldn't be acknowledging the new hard drive right?
I've been in f2 and f12, f2 (set up) it shows my new hard drive and it's size. f12 is a boot menu saying things like: normal then it has IDE drive, disc and cd rom. I assumed that was the place you were talking about since i can only get anything to come up on f2 and f12 and nothing is happening but I will try again with your response up on my other computer.
I thought also I should mention the reason I am trying to replace the hard drive in this other computer is my friend bought a brand new computer and shipped me the old one, it's a Dell Dimension 8250. It was working fine when she sent it to me but once I received it and hooked it up I got the blue screen with an unmountable_boot_volume and was told it was the hard drive.
The old hard drive is a WD Caviar 120 GB and the new one that is supposedly compatable is a WD Caviar Blue 160 GB they both are 7200 RPM. The old one on the back side say it's an enhanced IDE but the new one says it's an EIDE.
Anyway, I will try what you said again and will post what happened or didn't happen, LOL!
Thank you so much for trying to help me!!!