According to WDC's technical notes, the xPVX series of drives is backwards-compatible to SATA II/3Gb. Have you actually tried to install and format the drive?
It's often easier to attach a new drive externally (through a USB/FireWire/Thunderbolt interface) and format it first, before installing it in the optical slot. That way you can be sure the drive itself works before dismantling the machine. If a correctly formatted drive doesn't work once it's installed, then the HD-computer interface is the problem. That's when you look at the optical drive SATA cable, the bridge board in the drive carrier, or the connector on the logic board. Check to see that you're getting good function out of the optical drive before you remove it; that's a pretty good confirmation that the connector and SATA cable work.
If you've already copied the data off your old failing HD onto the SSD, and you have safe backups of everything, one option is to do a low-level format of the old drive. That will map out any bad blocks, so the system won't attempt to write new data to failing sectors. If the drive is mounted externally, SMART won't tell you anything about it - a drive needs to be attached to an internal bus to get a SMART reading. You could install the old drive into the optical bay, which would give you a SMART reading. It's likely that if it was failing before, it will still be failing even after the reformat. It's just that when you're running it externally, the SMART function on the drive is complaining, but the computer isn't listening to the complaints. Still, it would be an interesting experiment.
It's remotely possible you might have gotten a bad SMART reading on the old drive because of a damaged SATA cable. If that's the case, you might also be getting such readings from the SSD, since you probably didn't replace the cable when you replaced the drive.
Please post back and let us know how this turns out.