Dell Inspiron 5315 freezes at XP gui setup

Hello,

I'm trying to install XP SP3 or Windows 7 on the follow rig...

AMD 65 Athlon x2 +3000
2.0mhz Cpu
2gb ram
150gb hd SATA
DVD/CD RW


Now the issue is that this machine does not have an option for the sata drive to be set to Auto or ATA Nothing except disabled, sata1+2, sata 1 and that's it.... NO other option....
Now I can format, partition, system restarts and then the setup begins in the gui mode...installing devices 39 minutes, then at 35 it stops, freezes, does nothing else....
I have to wipe the system clean before I have to start another install. I'm thinking about flashing the bios.... I know there's something that I'm missing here...thanks.