Something that PSU does is actually corrupt the stuff in a PC. It's possible that the drive's dead. Try another drive in the PC.
If that doesn't do, it could be your onboard IDE controller is fried. You can either replace the board or get a PCI IDE/SATA controller.
If that doesn't do, it could be your onboard IDE controller is fried. You can either replace the board or get a PCI IDE/SATA controller.