Thank you for all your posts!
I sort of figured out the logic behind the SATA/Compatibility Switch.
WIndows XP/2000 do not support graphics card hot-switching. They even don't support native SATA mode.
By turning to Compat Mode, Windows XP/2000 can be installed and one of the graphics card will be turned off ( or it will cause panic to the Windows system). The best option, it seems, is to turn of the integrated Intel card.
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