I have done some further investigation, and found that the corrupted WININST.400 folder does not appear when I install other hard disks on the VIB878DS board, and also does not appear when I install the one hard disks I mentioned in my previous post onto other boards.
Therefore it does appear that there is actually some kind incompatibility between this board and this hard disk which causes the corrupt WININST.400 folder to be generated when installing Windows. Does anybody know what may cause such an incompatibility? To me almost seems as if a cache somewhere is not clearing under certain circumstances with this drive and board combination.