Additional Harddrive help

Trying to install a 2nd harddrive (western digital 160g) and have tried it multiple ways with no luck. The device manager see's it as a 2nd disk drive says its working proberly. Disk manager doesn't have it listed as drive. Listed as auto and I can see the 160g in setup (F2) as second drive. Partition Magic gives me 100 error partition table is bad. Jumpers when using it as a 2nd drive were set to slave according to the diagram and tried this also in multiple slots as well.

Now I have just the drive I want to format and start over with which I will make a 2nd drive later. Have it hooked as the master and trying to install XP and get there is no drive error, so try to install or delete partition commands and it just goes to a blue screen. Any ideas or help as I would love to use this 160g drive?

At anytime I can hook up the working drive back to the PC and all goes back to normal.