IDE Hard disk and installing WinXP prof OS

Hello,

system config : pentium 4 , IDE hard disk(40GB), mercury 845GL mother board basically it is 2002 configured system.

problem : recently my system BIOS stopped recognising the hard disk while booting and getting an error Incompatible HDD. i came to know hard disk got spoiled and so i bought new seagatte 160GB IDE hard drive and replaced new one. i can able to see in BIOS it is get recognised.but once i started booting from CD-RW to install Windows XP proff. it is loading all the file but once it comes to a screen where it will ask an options to install OS or want to format the disk. here screen is staying for few seconds(blink of eye) and system getting shut down.

my question is why it is not allowing me install OS.Is my motherboard / BIOS not supporting 160GB IDE HDD or anyother problem

can any one please help me to solve my problem.It will be great.Finally i want say thanking you fro reading my problem so patiently and replying me.

looking for reply as early as possible.