Hi Farno,
Welcome to the Q&A Board.
I'm very sorry to hear about the problems you've been having! I don't rightly know what to advise since it sounds like you're dealing with a compter hardware problem/conflict rather than a digital camera problem. Unforntunately, we are not really geared at this board to handle those types of questions.
Saying that, let me think out loud and offer some thoughts as to what I might try if I was in your position.
Have you called the manufacturer of the new hard drive to inquire what might be the problem? I'm assuming you installed it yourself but, if you did not, I'd certainly call the person who did.
My next step would be to go out and get a memory card reader. I got six-card reader for under $20 U.S. and it works like a charm. Most importantly, it doesn't require any driver with Windows ME and above. Another advantage is that you won't be draining precious battery power used when tranfering images from camera to computer.
If all else fails, before calling Sony or Microsoft and possibly incurring a service charge, I encourage you to visit the Sony digital camera forums at dpreview. Since it consists of Sony digicam users, I bet there will be someone there who's experienced the same and can help:
http://forums.dpreview.com/forums/forum.asp?forum=1009Hope you'll find a moment to let us know how it worked out when the problem is finally resolved.