I tried to up-grade to windows 7 on a SATA drive- using the NTFS format, yet I kept coming up with an error message “unknown, missing, or corrupt file. 0x80070570- aborting installation”.
I went as far as trying to install Windows XPv2 (Home) on to the SATA- I still kept getting numerous error messages.
Therefore I installed Win XP on an 80GB IDE using FAT32 and it works!
Conclusion- IDE may be slower yet installation works.