I had a drive fail and bought the latest InstantCake Image for my box. I used a pretty standard WD 160GB drive with 8MB of ram and an EIDE/ATA interface.
I got the "Partition not Recognized" and the Dreaded "/dev/hdi is not a block device?" warnings.
THe long and the short of it was that along with all the Primary-Slave configuration work, I also had to search through my BIOS settings and disable SATA support. Once I did this the image ran like a champ.