YMMV but I've bought a couple of IDE to SATA converters and I ended up binning them, as neither would work 100% reliably.
In terms of new stuff then under 200 notes for anew desktop:-
www.ebuyer.com/395305-zoostorm-desktop-pc-7873-1071
Then buy Win8 upgrade for 25 quid and install it on the PC using your Win XP COA (I think that will work)
Or basic new Dell with Win7 HP for under 250:-
www.dmxdimension.com/dell-uk/vostro-deal-comparison/#vostro-260
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