macresq.com will buy the remains of it from you for a pretty fair price.
you can find the drives around, but be sure you get a drive with a "female" connector like the toshiba that's in there - a lot of the ones i've aren't.
i've got a 3G with a dead logic board (those are $150) so i'm looking for something to do with the rest of the parts (like maybe a small enclosure to put the drive in and use as a 15G usb key).