I found out why we are having this issue:
From Western Digital Tech Support:
http://wdc.custhelp.com/cgi-
bin/wdc.cfg/php/enduser/std_adp.php?
p_faqid=928&p_created=1049320914&p_sid=5biXGjUg&p_lva=936&
p_sp=cF9zcmNoPSZwX2dyaWRzb3J0PSZwX3Jvd19jbnQ9NTgxJnBfcGFnZ
T0x&p_li=
Problem
The full capacity of EIDE drives larger than 137GB (128GB
binary) is not recognized in Windows 2000/XP.
Resolution
48-bit LBA support is necessary for drives larger than
137GB (128GB binary). The following conditions are
necessary for the correct functioning of 48-bit LBA
support in Windows 2000/XP:
Windows XP Service Pack 1 (SP1) must be installed for
Windows XP versions prior to August 2002. For information
about SP1, see Microsoft Article 322389.
The system must have a 48-bit LBA-compatible Basic
Input/Output System (BIOS) installed. This includes EIDE
controller card BIOSs.
You must enable the support in the Windows registry.
The Microsoft Knowledge Base articles listed below
provide important information about 48-bit LBA support
for drives larger than 137GB in Windows. For full
details, carefully review the relevant article.
From Microsoft Support
http://support.microsoft.com/default.aspx?scid=kb;en-
us;303013
This article describes the Windows XP Service Pack 1
(SP1) 48-bit Logical Block Addressing (LBA) support for
ATA Packet Interface (ATAPI) disk drives that can enable
the capacity of your hard disk to exceed the current 137
gigabyte (GB) limit.
Note 48-bit LBA support is not enabled and therefore
supported without Windows XP SP1. Windows XP Media Center
Edition and Windows XP Tablet PC Edition already include
SP1.
For additional information about the latest service pack
for Windows XP, click the article number below to view
the article in the Microsoft Knowledge Base:
322389 How to Obtain the Latest Windows XP Service Pack
MORE INFORMATION
Windows XP SP1 includes 48-bit LBA support for ATAPI disk
drives. With this support, you can use hard disks that
are larger than the current 137 GB limit. By default,
support is enabled in SP1. To determine if you are
running SP1, right-click My Computer and then click
Properties. On the General tab, Service Pack 1 will be
listed under System.
To determine if you have the latest ATAPI driver, verify
that the version of Atapi.sys in your %systemroot%
\system32\drivers folder is version 5.1.2600.1135 (or
version 5.1.2600.1152 for Windows XP 64-Bit Edition) or
later. To do this, follow these steps:
Click Start, and then click Search (or point to Search
and then click For Files and Folders).
Type Atapi.sys, and then click Search.
If the Atapi.sys file in your %systemroot%\system32
\drivers folder is not found, change your preferences for
the Search Companion to search system and hidden folders
and then repeat step 2. For additional information about
how to search for hidden and system folders, click the
following article number to view the article in the
Microsoft Knowledge Base:
302347 HOW TO: Search For Hidden Or System Files In
Windows XP
In your %systemroot%\System32\Drivers folder, Right-click
Atapi.sys, and then click Properties.
On the Version tab, note the file version.
If Atapi.sys is not version 5.1.2600.1135 (or version
5.1.2600.1152 for Windows XP 64-Bit Edition), obtain and
install the hotfix described in Microsoft Knowledge Base
article 331958. For additional information about this
hotfix, click the following article number to view the
article in the Microsoft Knowledge Base:
331958 Hard Disk May Become Corrupted When Entering
Standby or Hibernation or When Writing a Memory Dump
By default, the original release of Windows XP Home
Edition and Windows XP Professional do not have 48-bit
LBA support enabled.
You must meet the following requirements to use 48-bit
LBA ATAPI support:
You must have a 48-bit LBA compatible BIOS.
You must have a hard disk that has a capacity that is
greater than 137 GB.
You must have Windows XP SP1 installed.
For the original release of Windows XP Home Edition or
Windows XP Professional, 48-bit LBA could be enabled for
testing purposes by setting a registry value, named
EnableBigLba, to 1 in the following registry key:
HKEY_LOCAL_MACHINE\System\CurrentControlSet\Services\Atapi
\Parameters\
Warning Data corruption can occur you use this registry
value to enable 48-bit LBA support in the original
release of Windows XP Home Edition or Windows XP
Professional, or if previous versions of Windows that do
not support 48-bit LBA out of the box (for example,
Windows 2000 or earlier) are installed on a disk
partition that was previously created by a 48-bit aware
operating system such as Windows XP SP1 that is larger or
spans the current addressable limit of 137 GB.
Note: The preceding registry setting is ignored in
Windows XP SP1 and later. If you attempt to enable the 48-
bit LBA ATAPI support in the original release of Windows
XP Home Edition or Windows XP Professional by editing the
preceding registry setting and you did not meet the
minimum requirements, you may observe the following
behavior:
The registry value EnableBigLba is disabled. If you have
a 48-bit compatible BIOS that can support a hard disk
that has a capacity that is greater than 137 GB, only the
first 137 GB of the hard disk are addressable. The rest
of the hard disk is not used.
The registry value EnableBigLba is enabled, but you do
not have a 48-bit LBA compatible BIOS and the capacity of
the hard disk does not exceed 137 GB:
If you enable the 48-bit LBA ATAPI support by editing the
registry setting, but you lack both a 48-bit LBA
compatible BIOS and a hard disk that has a capacity that
is greater than 137 GB, you have not changed the system.
The hard disk continues to function as a standard hard
disk.
The registry value EnableBigLba is enabled without a 48-
bit LBA compatible BIOS, but you have a hard disk with a
capacity that is larger than 137 GB.
If you enable 48-bit ATAPI support in the registry and
you have a hard disk that has a capacity that is greater
than 137 GB, but you do not have a 48-bit LBA compatible
BIOS, only the first 137 GB of the hard disk are
addressable. The remainder of the hard disk is not used.
To enable 48-bit LBA support by means of an unattended
installation with the Microsoft System Preparation
(Sysprep) tool:
Copy the following text into Microsoft Windows Notepad
and save the text as the 48bitLba.inf file:[version]
signature="$CHICAGO$"
SetupClass=BASE
[DefaultInstall]
AddReg=48bitlba.Add.Reg
[48bitlba.Add.Reg]
HKLM,"System\CurrentControlSet\Services\Atapi\Parameters",
"EnableBigLba",0x10001,1
Create a file named Cmdlines.txt, which includes the
following lines:
[Commands]
"rundll32 setupapi,InstallHinfSection DefaultInstall
128 .\48BITLBA.INF"
Locate the Sysprep\I386 folder in the Sysprep image, and
then create a $OEM$ subfolder in this folder.
Copy the 48bitlba.inf and Cmdlines.txt files into the
Sysprep\I386\$OEM$ folder.
In your Sysprep.inf file, add a key named
InstallFilesPath to the [Unattended] section. This key
must have the following value: InstallFilesPath
= "C:\sysprep\i386"
To add the preceding settings to the Images folder, which
had been created with the Riprep.exe program:
On the remote installation server that contains the
Riprep image, create a Sysprep\I386\$OEM$ folder in the
following folder:
RemoteInstall\Setup\Language\Images\Riprep_dir_name\I386
\Mirror1\UserData
Note The word "Language" in the preceding path
reads "English" for the English language,
and "Riprep_dir_name" is the unique name that you
selected for the Riprep image.
Copy the 48bitlba.inf and Cmdlines.txt files into the
$OEM$ folder.
Modify the Riprep.sif file in the
RemoteInstall\Setup\Language\Images\Riprep_dir_name\I386
\Templates\Riprep.sif folder (and any other template
files for this Riprep image that you may have created),
and then add the OemPreinstall and InstallFilesPath
values so that they are set up as:
[Unattended]
OemPreinstall = "Yes"
InstallFilesPath = "C:\sysprep\i386"
Close, and then save the file.
