Win2000 install produces Disk Read Error

Installing a fresh copy of Win2000 on a Gateway P166 with 96mb RAM (quit snickering) I’m installing a new IBM 40gb ATA 100 RPM 7200 RPM drive in system. BIOS recognises the drive properly and win98 installs and boots fine. However upgrading to win2k or installing win2k from the diskettes seems to go fine until the first reboot. Then, after proper bios recognition I get “A disk read error has occured / Press Ctrl+Alt+Del to restart” each boot after it.

I suspect it might be a NTFS issue.