This is an IDE drive and from what I gather, you are trying to install XP when you get this problem.
Unfortunately, Dell do not appear to have an online manual for your PC so I cannot check whether or not I can see a disk operation mode setting. I have looked at the GX280 manual and could not find such a setting. Is the GX260 capable of SATA or PATA drives,
or is it PATA only?
Make sure it is the only drive attached at the time of installation including USB drives (thumb or spinning). Is it attached to an add-in IDE controller or the one provided on the Dell mainboard? Is there more than one IDE connector and is it attached to
the 'primary'? Is the drive's jumper setting 'master'? Is it a 40 strand IDE cable or an 80 strand? For an 80 strand cable the blue connector at one end should be inserted to the mainboard and the master drive on the other end, if it is a two drive cable do
not use the mid connector for a master drive.
Finally I have seen reports of a corrupted boot sector (by rootkit) causing this problem. Is the ST3160215A drive the original Dell drive? I.E. with proprietory Dell diagnostics and recovery partitions? If not then you could wipe the whole drive with something
like dban or killdisk and try installation again.
Tricky