New HD won't boot internally; fine externally
I'm trying to swap out the hard drive on my wife's late-2008 Macbook with a new Western Digital hard drive (regular style, not a solid-state drive). Cloning the drive with Carbon Copy Cloner seems to have worked fine (including the hidden Recovery partition) as it can be booted from in an external USB case on startup. The problem starts when I switched out the old drive and placed the WD inside. All of a sudden the Macbook won't boot up and I get the flashing folder icon instead. Switching the drives back and everything's fine; I can again boot up from either drive by holding the option key on startup.
I've read that some older Macbook Pros have an issue with SATA II data transfer rates and need to be slowed down from 3.0 Gbps to SATA speeds of 1.5. Unfortunately, it according to WD's site you can't do that with WD's 2.5" drives, only their 3.5"s. I've tried it anyways with a jumper and it doesn't seem to work for me.
I've also read elsewhere that there is a limit to the size of the drive that can be placed in: 500 GB. The drive I bought is 750 GB, so if this is true, that could be what the problem is. However, I can't find any mention of this supposed limitation anywhere on Apple's site. Does anyone have a reputable source for if this is true for this model of Macbook?
Late 2008 13 inch Aluminum MacBook running Lion
Western Digital Scorpio Blue (WD7500BPVT) 750GB SATA 5400 RPM 8MB Cache 2.5" Laptop Hard Disk (OEM)
MacBook, Mac OS X (10.7.3), 2 GHz Core 2 Duo; 2 GB RAM