A "Physical Media error" on a new drive is probably caused by rough handling in shipping, which has caused a mechanical failure (arm bent or damaged head), or there's "bad media" on the new drive (platter?) which is keeping it from being ready.
Chances are it's dead-I've only seen one bad drive from a manufacturer, and was told that one of the above was likely the cause of failure. This was a few years ago, so forgive me if the terminology is off a bit.
The only thing that I can suggest to do is to install it as a secondary and hope that windows xp will pick it up. If it does, you can try to run check disk on it and hope that'll fix it. You can also try to wipe the drive and reformat it. If this fails, then use it as a paperweight.
War produces veterans, wounded both physically and mentally. They have sacrificed for us.....and it is now our job to help these veterans, as they have already helped us in ways we will never know, in ways that we cannot fathom, and in ways that we take granted every day.