On this M1640, Setup found the SATA drive, but cannot access it correctly. You have to use F6 to supply Setup the NVIDIA® MCP73U Chipset SATA driver. You can choose either to use floppy disk or use slipstream to inject the driver into WinXP Setup CD.
If you need the driver, please download it here. [nvidia_mcp73_sataraid_floppy_xp32_mb.zip]