Stop 0x0000007B error stopping installation to usb connected 2.5" hdd

Hey guys,
I need to ultimately get data off of a corrupted windows install laptop hard drive (He needs these files so I cant format the drive, the recovery disk doesn't work). The drive in the laptop currently is an ata 50pin connector, and there isn't anyway to plug it into a PC to have it act as another "normal" drive - without purchasing 2 adapters: here and here
:angst:

SO

I was thinking of installing windows to another drive then plug the original drive back in, and have it act as storage, and simply browse and copy the the required files from it and then format it.

So, I am trying to install windows to a new 2.5" hdd (WD2500bevs), that is plugged in via usb. I can format and partition it, but as soon as it restarts itself to carry on the installation, I get the 0x0000007B error. Now I tracked some info down Advanced troubleshooting for "Stop 0x0000007B" errors in Windows XP and it seems its most probably to do with the controller driver for the hdd that is connected via USB. And seeing as I:

1) Cannot find any controller drivers from the western digital website
2) The laptop doesn't have a floppy drive.

I'm not entirely sure how I'm supposed to get the drive to work and get windows installed.

Could anyone please tell me what they would do to solve this problem?

PS. I did have the idea of using the version of linux which runs off of a cd and then plug in the new hdd, and then copy the files from the original HDD to the new HDD. But I have no idea what it is where to get it from.