Windows setup wont start on my toshiba sattelitte pro 6100?hdd to big?

I have a Toshiba satellite pro 6100 and I have just purchased a new hdd to put in it is 250gb. My old 40gb hdd has problems (makes noise)but when I have it in and start up laptop with the windows xp disk it will run setup.With the new 250gb hdd in place it will not run windows set up it will just go into a black screen and nothing will happen. I am wondering what is wrong? Is it too big?

I have had conflicting advice, There is nothing wrong with the 250gb hdd when it liked to a desktop. And obviously the xp disk is working fine,it also seems the laptop is fine (working with the other hdd) and has nothing to do with anything else other than this 250gb hdd.
Thanks