Windows XP Setup cannot find the XP CD

I have a really old computer that I am trying to fix up in my spare time. It has a AMD Duron 1.26Ghz processor, and 1GB of ram. I had XP loaded on it but I added a second hard drive. So I loaded XP setup and deleted the partition. But I had to exit because it wasnt recognizing the second hard drive (IDE 0). Once I got that to work as Pri Slave every time the setup gets to the point where you can delete/add partitions it tells me that I need to insert the disk. However the disk is already in, I have tried several different cd drives but nothing seems to work.
 
XP install

Do you have the jumpers set to 'Master' on primary IDE 0? And jumper on extra hard drive as 'slave' ( or take the jumper off? ) Do you want XP on primary? If so the second hard drive does not need to have XP on it. As long as it is formatted.
Note that the HD with XP on it, needs to be format NTFS, and the second HD 'D' can be NTFS or FAT32, but not the other way round.
It's possible you have the older HD 'C' in FAT32, and so it can't see the other one in format NTFS. (The older FAT system can't see the newer). The BIOS expects to see the Windows OS on the HD with 'Master' jumper on, on IDE 0 ribbon. Also check the BIOS shows (first ) CD/DVD.
 
Wow.. this is one of those hands on needed situations for me. I think as Mike suggested the place to start is the jumpers. I need to ask you though, why would you connect your hard drive to primary slave if that is where you are installing windows? Also, it just occurred to me, does it say can't find the disc or disk? There is a big difference. I believe your problem is the way you have your hdd set-up.
 
I have both my hard drives connected to the same ribbon on IDE0 and my CD drive on IDE1. I cannot format my hard drives because windows setup will not allow me which is why I posted this in the first place. I have my first hard drive set up as Pri Master, and my second as Pri Slave. My bios recognizes both of them now, but windows will still not let me install. I have a suspicion that since this computer is so old it was never intended to support this.
 
Installing XP

Your PC can't be too old to install an OS. You seem to have it almost right.
If your BIOS shows your HD s correctly, and you have a Jumper (plug) across the 'Master' pins on the back of the Primary HD, on IDE 0 ( please check that very carefully, it is easy to get it wrong), then all you need to do is look in the 'BOOT SEQUENCE or ORDER in the BIOS, and change the order around so that 'First device (to boot from) is your CD/DVD, second is primary HD. You can change the order back to IDE first AFTER XP is working. When you reboot, Windows XP disc will search the primary HD for any partitions, and any OS in them. You can delete what's there, and create a new partition if needed. If you want the simplest way, have only one partition, that fills all available space, install XP on that. Make a note of which partitions are NTFS, if any are FAT32, do a FULL format NTFS, (it could take 30 mins or more, depends on capacity of HD). (If of any interest, I have my C & D drive on IDE 1 ribbon, and 2x CD/DVD on IDE 2 ribbon. In fact there is text on the board to advise that way. It's an old ASROCK P4i65G.)
 
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