I don't think there would be any grounding issues... though I suppose anything's possible.
As for your hard drive, I've seen this happen time and time again (not saying YOU did it necessarily, but it happens a lot). Did you set your jumpers correctly? Make sure to look at the drive and find where it says how to set the jumpers, and set it to the "single drive" position. If there is no position for that, use "master." Under no circumstances use "cable select." Every time I've seen someone try that (myself included) it hasn't worked. I haven't heard any sufficient explanation for WHY that is, but that doesn't make much difference. It just doesn't work.
If that's not your problem, sorry. I can't think of anything else off hand.
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