There are so many things wrong with your setup you need someone that knows computers to drop by and help you. I don't have time to do the tech support thing over the internet, but in short:
-You need to fdisk and format the new drive into one or more partitions (I'd suggest a 20GB system partition [C:], the rest as a data drive [D:])
-You need the new drive on the SATA to be setup as the boot drive (since it's probably much faster than your old one)
-You need to get your old drive as Primary Master (will be drive E
-You need to get your DVD drive as Secondary Master (will be drive F
-You need to reinstall windows on the new drive
This will involve boot disks, BIOS changes, jumper changes, cabling changes. If you don't know everything I'm talking about, get help.