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Have you tried swapping out the ide cable to make sure it's not faulty?
Did you do a full format in the windows setup or just a quick?
Also check for any bios updates to the mobo.
Last but not least check with MS site to see if the mobo is even supported for the os you are trying to install. Since the raid on it sounds like it used to be a server then perhaps it's not meant for non server os. I know you tried to install win2k but if you have access to win2k server or win2k3 try that as well.