1) It should.
2) Yes, it takes regular 3.5" IDE drives, called PATA or UATA. It will only access the first 128 GB of any drive - if you have a bigger one, it will work if you format it so the first partition is inside the 128 GB. There are software hacks around that, if you have to have more than 128 gigs, but I haven't tried them.
3) Amazon has it, through some of its partners. Used, obviously.