When it asks you about where you want to install the OS you will want to delete and recreate the partition. The install will then format the drive again. That should get rid of that nasty Vista virus. :)
You need to go into your BIOS and invoke SATA Compatibility mode.
If you don't have the capability in your BIOS then you'll have to get hold of a USB floppy drive and install the SATA drivers during the install when required.
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How can you Reboot and start in DOS with Windows Vista?