SATA Drive Bios settings Dell 8400

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Had a SATA drive DELL 8400 (less than a year old) Dell error code 7, told drive bad need a new one. Person came to install drive, left without installing windowxp. Tried to install windows xp, said drive not detected. Had to call person back, they went into the bios and changed the settings to ATA, then windows loaded. Then when I went to install drivers with Dell disk RAID something or other, was detected but when drivers went to install, said it wasn't there. (kind of don't understand what RAID is)
Questions:
1. Should the bios be put back to original settings, and then those drivers put in, or leave well enought alone since the computer is working OK?
2. Is code 7 always fatal? I want to get some files from the old hard drive, can I add the sata to an existing computer with an IDE using an add in card, in efforts to try to get some important files?
THANKS, INFO APPRECIATED.
 
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