Edit -Addition 30th May
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Gotem, I think, the drivers that is. The board seems to be not only Intel Chipset, but made by Intel. Then there is a clue here:
http://en.wikipedia.org/wiki/Advanced_Host_Controller_Interface
With some weasel word marketing mumbles about compatibility which if you translate it into English means that you should not just install the SATA drivers if you might switch to RAID one day 'cause there are grave problems if you try and install the RAID enabled drivers over the top of the non-RAID drivers. My guess is that you can't, you have to reinstall XP. If you read the "Intel recommends" bit, you will also see that the recommendation is to install the RAID anyway to avoid that problem as the RAID drivers include the AHCI drivers (AHCI is the clever SATA drivers part that lets you hot-plug etc).
So, if you install the RAID you get SATA as well, and you can then, if you wish, upgrade to RAID without any problems, later. (the machine is precabled for RAID apparently).
Here are the RAID drivers. You need the special F6 version which has an additional file to allow it to install before the OS:
http://downloadcenter.intel.com/detail_desc.aspx?agr=&ProductID=1809&DwnldID=14796&strOss=&OSFullName=&lang=eng
Download that file and take it to a friend who has a floppy disc drive. Run the exe,it will write to any floppy disk you insert in the floppy drive. Grab those files, copy them to a hard disc folder. Then burn them to a cd, make 2 copies-just in case (no folder, just the files). List as follows:
iaahci.cat
iastor.cat
iaahci.inf
iastor.inf
txtsetup.oem
iastor.sys
license.txt
readme.txt
Now have that CD available when you are installing. As soon as you see the option to install drivers, hit the key indicated (usually F6). Then swp out the XP CD and put the RAID driver files CD in. Let Windows find them and install them. it shouold work fine now. We hope.
If, in spite of everything, that fails, then try this trouble-shooting page:
http://www.mydigitallife.info/2007/10/23/common-troubleshooting-methods-when-os-install-unable-to-detect-sata-harddisk-drive/
Original Post
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Yes the SATA is the latest and greatest, comparable to the transition from AGP to PCI-e for video cards. The mechanical difference is the most obvious:
http://www.computer-hardware-explained.com/sata-vs-ide.html
You won't see a big increase in day-to-day performance, but copying big files might be a tad quicker. The installation is easier as the cables can be longer with SATA, and of course a lot smaller. The drivers are a bit of a pain, but a lot easier if you have an sp3 XP with the drivers in it.
Yes you can put the drivers on a CD if you have the correct ones. They must be expanded first- most Sony drivers are supplied as exe files, and you can't use that at the install stage. If you have an exe just run it on a friends machine and it will expand the drivers to some folder somewhere. Try RAR, Winzip and/or 7zip, that might just expand the file with a right-click. You may have to hunt for the folder if you just run the exe.
Problem is that Sony SATA drivers are notoriously difficult to get hold of. Which means they don't want you to have them for some reason. Perhaps it's company policy so they can use the DRM in Vista. The only one I could find is the RAID driver which you don't need.
To cut a long story sideways, I think this is going to be a tough question.
You might try searching for a torrent with XP SP2 or SP3 and SATA drivers pre-installed. They can be good if the right one is there. Or you might get one infested with spyware. Unfortunately only experience will tell you the good ones.
To save time, it might be a good idea to hunt down a small repair shop not too far away that can repair Sony Desktops. Tell them what you are doing by phone, and tell them that all you need is a CD with the SATA drivers on it so you can install said XP. You might get lucky and fall on someone who actually knows what they are talking about. Don't be arrogant. Just beg and grovel if necessary. Tell them you are willing to pay for it if necessary. They might charge you for an install, but that shouldn't be too expensive - as long as you get a cd with the drivers on it. You are desperate, so you don't need to act.
In future, nice though that machine was for its time, do NOT buy Sony, the hassle isn't worth it.Build your own or get someone to build it for you with a known board with a good history.
I hope you get it running soon, it looks nice and should perform well.