I have that 120 gb drive and it works great. I got it for 40 bucks too and will probably pick up another to go with it. Course I built my computer for 300 bucks, with a ti4200, 512 megs ram, 120 gig drive, 2400+, and it can take most of what I throw at it. I have 3 hard drives, a dvd drive, cd drive, all on my weaksauce generic 300w power supply and it is flyin', by my standards. Not top of the line, but in a year when I throw 300 bucks at my next computer, its gonna kill a lot of these current thousand dollar systems. SATA seems to be great when your bios can handle it right. Can't wait.
Enough about my cheap ass. If I were you, I wouldn't a dropped 310 on that processor when you coulda picked up the good ram that everyone is suggesting and popped in a mobile barton 2400 or 2500 with an unlocked multiplier and a good thermalright heatsink and gotten a much faster processor for 80 bucks. If ya fry it, ya can buy 3 more before ya hit your old total. And you'd be playin with an athlon 3800+ (or whatever an aircooled 2.5ghz athlon is called) instead of a 3200+.
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