The best drive to have would obviously be a 120 GB hard drive, but those are becoming difficult to find.  You can still use the 320 GB drive, however, because Windows uses its own drivers for the hard drive.  All you need is an installation disk containing at least Windows XP Service Pack 1 (older versions of Windows don't understand drives larger than 137 GB either), and a boot partition that doesn't exceed 120 GB in capacity.

The way it was explained to me is that Windows likes to move certain boot files around to optimize the boot-up of the OS.  If you install to a partition that is larger than 120 GB it is possible for a critical file to be moved to a disk address that is beyond the 120 GB limit.  All standard PCs still use the BIOS routines in the computer to get things started, and if the BIOS can't see beyond 120 GB, the address of the file sort of wraps around back to the beginning of the disk.  This tends to corrupt the data on the hard drive, and you start up one day to find all you get is a black screen with an unbootable hard drive.

When you begin the installation process, make the first partition 120 GB or less, and install Windows to that.  The boot files will therefore always be within the first 120 GB of the drive and your data should be safe.  Once Windows is up and running, it has its own drivers for the hard drive and you can use Disk Management to partition the remainder of the drive as you wish for data.

Thanks for the advice.... I will partition for 120GB....

I will give it a try.....

Best Regards

Chris