Are you installing XP from fresh or over 98?
Are you sure office XP doesn't work with 98, I seem to remember having it installed on my pc with 98 on long before upgrading to XP?
Are you setting the drive as a raid array or just a drive on it's own, if you are using it as a raid drive then to the best of my recollection you have to install 2 hard drives?
I have a SATA drive on one of my pc's but it's not an array as it's a single drive!