I would agree with Paul. You're definitely seeing physical problems. The lines that contain "hda: read_intr: error=" are the clue.

As he says, double check your cabling. Have a close look at the IDE header on the main board, to make sure that it's not pulled away. Double check that you've got the cable on properly (it's easy to get laptop cables on incorrectly). Also double-check that you've got the drive jumpered correctly.

The fact that the drive works fine in a Windows XP machine strongly suggests to me that it's a cabling fault.

Once you can connect the drive without seeing any "read_intr" error lines, then try the builder again. As Paul says, sometimes it doesn't work, so try it twice. Alternatively, you could use my instructions for partitioning and formatting your new drive, but they're not for the faint-hearted.