Size of the drive shouldn't matter, you'll just not be able to use all of it if you hit some sort of boundary or you run a program to overcome it;)
The next barrier up is the 137GB barrier, I doubt it is a problem for you though.
The 845 chipset which you motherboard used (If I'm right, use this program to check http://www.cpuid.com/cpuz.php
) support up to ATA100*
You cannot use SATA devices on the board (no connectors for one thing).
I wouldn't bother with addon cards as a budget mobo/cpu/ram and integrated stuff** would be a better buy along with a SATA drive.
oh I am assuming you motherboard is IM845GL looks like plenty in google search
*though if you see ATA133 mentioned that will work fine as well
** e.g. Ebuyer QF codes
139975 CPU (Intel E1200 dual core) £37
148294 Motherboard with Video (Asus P5KPL-AM iG31 mATX) £37
131300 250GB SATA Harddrive (Seagate)
142350 1GB DDR2 RAM (OCZ)
All for £118.46 delivered
(add another £15 to £20 if you wanted a cheap new case with powersupply)