Thats the problem. I don't have XP. It seems like it is a hard drive/vista compatibility thing as I see the hard drive in BIOS but not while installing vista. I am going to talk with Samsung tech support on Monday to see if my hard drive is compatible with vista.
In your case, when you choose the C:/ as the drive you want Vista to be installed on, Vista will attempt to write the installation files to that partition. However, before it can data on a HDD it needs to be forwarded by the HDD Controller. From the sounds of it, Vista doesn't have drivers in its libraries for your HDD Controller as you're trying to install it onto a computer with a motherboard that is based around a very new form of chipset.