Ok just uninstalled drivers for both devices and re-booted.
Windoze found both devices and installed them but didn ot confirm they were "Ready for Use", I still have yellow exclamation mark by each device.
Proerties for each device in Device Manager gives the following message, "Windows successfully loaded the device driver for this hardware but cannot find the hardware device. (Code 41)" what is error code 41 ?
The strange thing is that Device Manager doesn't indicate a problem with IDE controller.
Bios settings look fine (not changed) and no jumpers to set.
Will try to swap IDE 1 and IDE 2 connectors to see what happens.