I don't have a SATA drive installed, but I do have a controller integrated on the motherboard.
XP SP2 build 2055 did not recognize it on install. When I did a clean install of SP2 build 2082 I had to hit f6 and load the drivers first. If I had a sata drive I could have installed on it after loading the drivers.
So to answer you question. It supports sata as long as you load the drivers on install.
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