Download the manual for the Presario you own and look for BIOS settings. You haven't stated how old the unit is but for many OLDER (pre-2000) computers there can be a "wall" in BIOS as to how much hard drive can be supported (6.4, 8 or 138 GB I believe it was). This marked the time when computers where moving from 95 to 98 to 2000 and XP later and memory types were moving along from PC66 (66 MHz bus) to PC2100 DDR or thereabouts. Before 2001 80 GB was actually LARGE, VERY LARGE! The explosion in drive size has only begun to really take off after 2000 hence the smallish limits.
You can look at three things.
If 160 GB is not fully recognized you can reload with multpile partions. This may or may not work well and especially depending on the OS so you may want to see if the BIOS can
be FLASHED to update it to meet your current requirements.
NOTE: If you are not experienced at flashing a BIOS SEEK HELP! Damage can occur that may require professonal help or may make the motherboard USELESS! Follow all instructions EXACTLY.
Number two: Turn on the S.M.A.R.T setting in BIOS (setup) and choose the normal POST display (no logos, memory check in full mode, no fast/quick post, the entire thing). Your computer will halt on drive errors prior to booting.
Three: any good drive with an operating system withing storage parameters will allow booting if the BIOS likes it. If you are trying to use an SATA drive without having the capabilities or an adapter, substitute a "regular" IDE/EIDE type drive or install an adapter.
A trip to Compaq's site would be of great help to you at this time. As you are not the original owner, Compaq support may be limited or fee-based ($$$).
Two last details (very important): Boot your computer with F8 into System Restore and see if you can either restore old settings or debug. If that fails check the boot drive order in BIOS and adjust it so that IDE0-3 (your OS hard drive should ALWAYS normally be the Primary Master or IDE0) is in the options for boot order. If you are not using the drive on one of the boot parameters listed it may not find it. Likewise do not install to a drive using a PCI (SCSI-type) IDE adapter...these require a drive on IDE 0-3 to operate properly and the OS will not register.
Detail two is from the BOOK OF DOOFUS: make certain you set the jumper correctly on the hard drive! See the Western Digital website for instructions.
Best of luck and these are basic instructions regardless of who made it or when.