Sounds like either the drive itself is faulty, perhaps a manufacturer defect, or wherever you bought it from their workers dropped it too much taking it off their stock trucks.
Or, it could be something like the IDE cable or power molex aren't plugged in all the way.
If you're sure you plugged it in all the way and such you could try returning it to where you bought it for a refund or even a replacement of the same model.. unless they'll let you try another of the same price or something. If the problem persists after you use a different drive, then it is probably more serious.