There are two modes of transfer from a hard disk, PIO and DMA. DMA (Direct Memory Addressing) is much faster. Windows will usually choose DMA if available, but you may have to go into Device Manager - Hard Disk - Properties and tick the DMA box.
Ultra DMA also requires an 80 strand IDE cable to connect the disk to the motherboard. If you use an older 40 strand cable, the disk cannot run at its fastest and you may well get a message like the one you have.