You need support for 48 bit Addressing to recognise drives larger than 135GB.
At the moment you just have 28 bit addressing which can only recognise the first 135GB of the drives.
Support is in the form of a Driver upgrade.
A BIOS upgrade *maybe* needed.
Go to the website of your hard drive and they hopefully will have the solution.
However i think Windows XP Service Pack fixes this problem so install SP1.