WD5000BPKX will not boot after cloning with True Image 2013

Hi all,

I recently purchased a Western Digital black series hard drive (WD5000BPKX). This was to replace my still functioning but lower performance Seagate drive. I performed the following steps but am unable to boot the XP partition on the new drive.

Steps:
--Loaded new drive into USB cradle and attached to computer (Windows 7 Professional x64)
--Loaded True Image 2013 and went through the automatic cloning process
--Rebooted and allowed the process to finish
--Replaced the old drive with the new one and booted in Windows 7 (no errors, functionality seems correct)
--Rebooted and switch the ATA operation mode to ATA (instead of RAID) (I always do this to boot XP)
--Exit BIOS and select Windows XP from the boot loader
--The system begins to boot, but hangs at the XP splash screen.
(This is strange because I use NT login and not fast user switching, so I normally do not see this screen)
--I let it sit there for about 3 hours with no change, the hard drive light has a very rhythmic activity.

I am now trying to troubleshoot this:
--Boot into safe mode but it still hangs at the splash screen
(I get the black background with safe mode written in the corners, but then it switches to the splash screen)
--Replace new drive with original Seagate unit
--Change ATA setting in the BIOS back to RAID and boot to Windows 7
--Download WD Align tool by Acronis
--Attach new drive with USB cradle and run the align tool
--It states that the partitions are already aligned and no actions can be performed
--Replace Seagate unit with WD drive and boot using Windows XP installation CD
--Enter recovery Console and login
--Run bootcfg /rebuild (returns error and suggests chkdsk /r)
--Run chkdsk /r (repairs an unspecific amount of errors)
--Run bootcfg /reuild again with same result
--Reboot and get the error "Cannot find system file ntoskrnl.exe"
--It does not reach the bootloader and neither Windows 7 or Windows XP are available
--Reboot using Windows XP installation CD
--Enter recovery console and browse for ntoskrnl.exe
--It is still present

This is where I figure something may have went wrong with the cloning process:
--Replace Seagate unit and boot to Windows 7 (Setting ATA back to RAID as usual)
--Format WD drive and run WD Align tool to check for any changes
--Same response, drive is aligned and no action can be performed
--Run the True Image cloning process using the manual function (instead of automatic) this time
--I select the AS IS option for the partition sizing
--The process completes successfully
--Replace the drive with the same results

NOTE: I am not sure if this is a clue to the underlying issue, but I figured I would mention it. When XP hangs at the splash screen the resolution is very low. As it normally is when you first install XP and the drivers are not loaded yet. This is a 1920x1080 display and works at full resolution using the original drive.

I am now stuck and reaching out for suggestions.