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The problem is that XPinstallation CD does not have a SATA driver, unless you have a SATA drive on adisk etc. and can install the driver when XP asks for a hard drive driver then,XP cannot detect the hard disk and therefore won't install XP.
The FIX.
Go into the BIOS anddisable the SATA drive (enable IDE emulation), this will make XP think it is aIDE/PATA hard disk. Then you can install XP normally. When Windows hasbeen installed then install all the device drivers (including the SATA driver),then shut down and boot up and got into the BIOS and enable the SATA drive.
1. Turn Off the computer
2. Try taking out the hard drive and put it back in
3. Go to the BIOS again... see if the BIOS detected the hard drive otherwise
4. Replace the hard drive
Yes the Sony should run Win 7 although its designed for XP. For Win 7 to run properly you will need to max out the memory to 2GB. I have installed Win 7 on plenty of older laptops without any problems. You won't be able to use the aero glass features (see through taskbar and window borders) as the graphics chipset doesn't support that feature but everything should work well once you have enough memory installed.
They are usually right along the front of the laptop so best way to get it to die is to remove all power sources for a few days/weeks and have it die out.
Check your power supply, if the supply is good, then check the adaptor on the side of unit.
Do you have a power light when plugged in ?
Does the power supply have a light ?
Also you may try removing the battery and try to power up.