I've come to the conclusion that the motherboard does not support SSD (or this particular SSD at least).
I Googled several possible fixes including setting the mobo to IDE then switching to AHCI later and forcing Windows 7 installer to install to the SSD during selection of the drive. However, none of those worked for me.

Even Windows 7 Disk Management does not recognize the drive despite the BIOS detecting it.
I'm currently using the Intel SSD as a secondary drive on my own rig for my VMs and other Program Files. It's working great. No SMART errors.
I just find it weird that a GeForce8200 board doesn't support SSD while my AMD780G board (IIRC they came out at about the same time) does.
I'll probably just try to get as much RAM on this rig as possible to somehow compensate for the regular HDD.
Reviving this old rig has been been pretty much a PITA.
1. Too much thermal paste.
2. The stock processor fan for some reason was replaced with a low rpm CDR-King CPU fan that was loosely screwed on an inch above the stock heatsink. I'm surprised the Athlon II X4 didn't get cooked. Good thing I had a spare AM3 HSF lying around.
3. Front panel LEDs were connected to the mobo header with the wrong polarity - kaya pala walang ilaw ang case when I got it.
4. CMOS jumper was set to the CLEAR position. But now, even with a new CR2032, the BIOS still resets.
5. 1 bloated cap which I replaced.