You need:

The XP CD with Service Pack 2 on it.
The floppy diskette with the SATA driver on it.
An INTERNAL (NOT USB) floppy diskette drive.

Boot the XP CD, press F6 where indicated, and insert the floppy. ONce the driver loads, the install will continue normally.

Thanks for your reply.  Actually what I finally figured out was that my DVD drive was my Master and CD-R was slave.  So the bootup CD wasn't reading off the DVD. I turned the DVD off so that the CD-R was master, and the Dell OS disk started next time through. 

Though, new problem, I installed and loaded my new Hard drive and then put my old drive back in as slave.  When the machine boots up, I can see both drives, but can't access my old one.  I get an I/O error.    Is there something else I need to do, or does that mean that I lost everything on that drive :(

Dell does not like master and slave. try setting all drives to cable select.

If these are SATA drives, they do not use jumpers. SATA is one drive, one cable - no master, no slave, no cable select.