I took a shot at trying a Windows 7 then XP Pro install on a clean 200GB EDIE hdd last night.
From 7 I shrank the (C) volume & created 50GB of Unallocated space, then booted with the XP CD.
Created & formatted (not quick) the new partition & XP started loading files then restarted & I got this Error message.

Ctr+Alt+Delete & either got just a black screen & blinking cursor or that error message,
Tried 2-3 more times w/ the Ctr+Alt+Delete to wish for luck...
So I tried another XP install quick formatting (2x) & overwrite existing (1x) still got stuck at the error message or the blinking cursor.
I could not get back into 7 either, so I switched back the original EIDE hdd w/ 3+ OSs installed & it worked fine
One strange thing that happened was that I found that the Windows 7 install or somehow, my BIOS was changed at the RAID Controller to being Enabled from being Disabled & 7 started asking for drivers.