A while ago my HP pavillion dv2004 was being faulty and constantly crashing and error in loading files. I called their support and it turns out that the hard drive had failed. (failed the diagnostic test) So they had me send the laptop back to the factory.

But when I got it back, they had not install windows in the new harddrive. They only placed the new harddrive in and they told me to install it myself. When I placed the windows cd in there, everything started loading up but then i reached this error message. "Setup did not find any hard disk drives installed in your system"

I looked online to see that sometimes the windows xp disc couldn't see SATA drives or whatnot and needed the floppy discs to set it up. But I was away at school and my laptop had no floppy disc input...

This is when I decided to play around and went in BIOS and checked to disable the SATA option and Windows installed.

My question is, is that ok? The OS installed fine and operates but will that disable option have any effect on the way my computer runs? If so how do I fix it? I find that my laptop heats up really fast, is that in any effect related to this?

Thank you for your time!

You should be asking HP tech support about that SATA option.
That computer runs hot, so just be sure the air vents are never plugged.
The fact that a new hard drive failed is a bit worrysome, so consider extending your warranty if you can.
HP owes you a big explanation, but if you call their tech support and nicely demand that you get some assistance, HP is better than most in providing follow-up service. If you get a jerk, just hang up and call back until you get somebody decent