I bought a WD Black Caviar 2TB SATA bare internal drive for my Photoshop computer (Dell, running Vista 32). The steps I took for installation were:
Is that WD an "Advanced Format" drive? I had lots of probelms with "Advanced Format" Drives on my WHS (Server 2003), moved them to a W7 based machine and all is well.
On the EARS green drives, you do need to set the jumper for older OSs.