Early BIOSes were limited to CHS addressing:
http://en.wikipedia.org/wiki/Cylinder-head-sector
Originally, the maximum values for CHS were 1024/16/63 which equates to a capacity of 504MB. This was the first BIOS limitation.
Other limitations, both hardware and software, are explained in the following articles:
http://www.dewassoc.com/kbase/hard_drives/drive_size_barrier_limitations_2.htm
http://www.dewassoc.com/kbase/hard_drives/hard_drive_size_barriers.htm
According to page 20 of the following document (page 26 of PDF), your hard drive reports CHS values of 16383/16/63.
Barracuda® 7200.10 PATA Product Manual:
http://www.seagate.com/staticfiles/support/disc/manuals/desktop/Barracuda%207200.10/100402369f.pdf
The above CHS numbers are the maximum values allowed for in the ATA standard.
In order to see your drive's full capacity, your BIOS must support 28-bit LBA mode:
http://en.wikipedia.org/wiki/Logical_block_addressing
Alternatively, you can install a dynamic disc overlay such as MaxBlast or EZ-Drive or Disk Manager. These place their own code in the MBR and add memory resident BIOS extensions for LBA support.