adding a new drive to dell dimension 4300

I have a Dell Dimension 4300 with a 20 GB hard disk and it been
working fine for around 2 years now. I figured I am running out of
hard disk space and I bought a additional 40 GB hard disk direct from
the dell site itself matching the exact part # unmber recommended. It
is a western digital hard disk.

I read the manuals to install a second hard disk and I proceeded to
add the second drive as per the instructions on the manual.

This dell used the cable select mode, and the drive on the end of teh
cable is primary and I am supposed to add the second drive to the
middle pin on the IDE cable and it will be treated as a slave drive.

I finished the installation, proceeded to bootup and checked the BIOS
and made sure the two disks are detected in the BIOS with the right
config and it did.

IDE 0 - 20 GB - Primary
IDE 1 - 40 GB - Slave

I went on with the login to my Windows XP Home addition. Here is the
problem.
The bootup process goes as far the either the login screen or if I do
login into my account, it goes to my desktop and starts all the
services that are supposed to be started and then in both occasions,
after 2-3 seconds, a BLUE screen appears and then the machine reboots.
The blue screen doesn't stay for a longer time for me to read what it
exactly says.

This sequesnce repeats as long as i have both the disks in. If remove
the second disk connection, then everythng is back to normal and works
fine.

I worked with the DELL support guys, they tried various steps but we
really couldn't proceed any further. we tried connecting only one disk
- the new one and it detected in the BIOS but couldn't process any
further to format the disk or anything.

Please let me know what i can do next. The dell guys say I will have
to contact the dell advanced queue guys next and be on the phone again
for hours but i have to pay for the service. Please advise.

Thank you.