Change it to DMA. In Windows XP, that drive mode is a selection list.
DMA is one problem.
The second problem sounds like you're out of hard drive space. You're probably still capturing to the primary drive, not your new secondary, and beyond that, the recycle bin may be full (empty it). If you have a special "trash manager" be sure it is not reserving space (Norton
Protection, part of Norton
Utilities, is one example).
Change your hard drive location in ATI MMC by going into the ONE TOUCH RECORDING and change the location where it saves files. The ONE TOUCH settings are MMC-wide.
Try all this then get back to me.