Windows XP most likely requires you to partition the drive using a Master Boot Record rather than the Mac-default GUID Partition Table BEFORE you start the installation; you can do this by booting from a MacOS X install DVD, going to Utilities > Disk Utility, choosing your disk, and going to the Partition tab, under which the Advanced button will give you partitioning options. Windows Vista and 7 also do not support booting from GPT but they can read/write and will probably recognize the drive. Windows 8 supports booting from GPT drives and should have no issue with seeing the drive in any case.
It is also worth mentioning that Windows XP is old enough that it may display serious issues with hardware developed a full ten years later. If you see persistent problems and you have a newer OS available, you are likely to see better success upgrading.