This error appears if you do not have the BIOS set to AHCI when trying to install.
So, since you are in IDE mode now, you will need to make the following registry changes, then enable AHCI in the BIOS, then install the Intel program
Enable switching between all IDE/AHCI/RAID modes by changing "Start" Values in these keys to 0 (Win 7 / Vista ONLY)
HKEY_LOCAL_MACHINE\System\CurrentControlSet\Services\Msahci\Start
HKEY_LOCAL_MACHINE\System\CurrentControlSet\Services\Pciide\Start
HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\services\iaStorV\Start