i have a similar problem as well, but the bios reported a smart drive error about 5 weeks ago....i reconnected it today, and it still reported that error...its a maxtor diamondmax 9 plus sata drive...
its running kinda hot too btw, (im using a molex 4-pin power cable....didnt get a sata power cable with the drive...)

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i have currently a 420 mb drive (from my other 486dx2 comp, anyone?) with win 98 first edition...the other drive, the maxtor 120 gigs, also has the same os on it...is it possible to get the data off of it?