I suspected that the AHCI setting in the bios had something to to with it, but when I tried changing it to ATA i got an error message saying 'drive not found' or something of the like. I then tried changing the setting from AHCI to ATA and then reinstalling, and apparently this solved everything, because I reinstalled Vista Home Basic without any error messages and it seems to be working fine.
My Vista started showing blue screen at loading crcdisk.sys during boot and went into a boot loop. Thank you for bringing my attention to this BIOS setting. I changed the setting from AHCI to ATA and it worked for me.
When I started the machine after several days, I was prompted with an option at boot to load default BIOS settings. I don't know why that prompt came up, but I suspect that caused the BIOS setting to go to AHCI where it should have been ATA.