Here is the thing about Hard Drives carrying Windows as the OS. When you take that Hard Drive out of the computer and put it into another computer, the OS commits suicide in a sense and becomes unusable. You can still use it. But only after you wipe it. Also, always wipe a hard drive before you change operating systems. Here is a problem I have noticed with installing linux on a hard drive. After you decide you don't want Linux anymore and you want to go back to Windows, it always sends up an error code. This is because Linux leaves traces of files on the hard drive which conflict with the Windows Setup Files. The only way to combat this is to wipe the hard drive completely again.
http://www.disk-wiper.com/
You can find it for free of course if you look around but I am not about to post any links because that constitutes fraud on YA.
So, wipe the hard drive again and then try installing Windows XP
"Bios finds the HDD". So obviously it isn't a hard drive failure. It sounds as if the program you were previously using did not wipe the hard drive effectively or something.
I have experienced what you are talking about before with my Dell D610. I installed Ubuntu on it but didn't like it because it didn't recognize the WLAN card so I ended up trying to put WIndows XP back on it. It wouldn't do it though. I kept getting this error message when it came time for Setup. So I though about it a little while and I decided to wipe the hard drive in order to get rid of the traces of Ubuntu that were left on there. It ended up working correctly.
Another very important thing to account for. When installing Windows XP on any machine that is mean't for Vista or 7 always remember to go into BIOS and switch the RAID settings. I don't know what the options are. But play around with it a little [best way to learn
let me check my Acer for options...i'll be back
Ok. My Acer is a Vista machine that is running XP. In order for this to be possible I had to switch the "SATA Mode": from "IDE AHCI" to "IDE native"
Here is how I get to there: PhoenixBIOS Setup Utility>Main>SATA Mode>IDE native or IDE AHCI. I chose IDE native. After which it the computer let me install Windows XP with no problem.
If it is possible to load sony drivers before the OS installation then try that. If your Sony Vaio laptop is new than there is a good chance that there may not be SATA settings.
http://www.tomshardware.com/forum/281815-32-vaio-ahci-mode-option-bios
Based on what I am reading it sounds as if changes to SATA setting are done automatically.
Read through it though.