WD360 + Intel 875PBZ + XP Problem

I have installed two Western Digital Raptor 36GB drives on a test machine.
They connected via Serial ATA cables to an Intel 875PBZ motherboard. Intel
RAID is enabled. I have setup a RAID 0 array with 128Kb stripe.

Basically, I go through this sequence:

a) XP boots off the CD drive
b) I press F6 to specify third-party storage drivers
c) XP installs a few files
d) XP asks for the storage drivers, I insert the Intel RAID driver disk
e) I then specify an 8GB drive to install XP on (out of the total of 67GBs
available)
f) XP formats the disk, then installs its files
g) XP then wants to reboot

At this point I'm having the trouble. Once the system reboots, the Intel
RAID information screen shows then the regular BIOS information is shown,
then (without the XP CD in the drive), I get:

"A disc error has occurred
Press Ctrl + Alt + Delete to restart"

?! I'm baffled.

If I destroy the array and go into the BIOS then specify the IDE type as
Legacy (instead of Enhanced, then select SATA P0/P1 + PATA Primary (instead
of "Intel RAID enabled"), XP will successfully install fine, on the single
drive of course.

So installing XP with RAID setup, fails to boot. Installing XP on a single
drive, works. This exact same setup worked fine with two Seagate Serial ATA
120GB drives I used to have. So the only difference is the drives, but what
in the drives would stop RAID array from working/booting?

Any ideas?

@drian.