Had to look twice as that drive comes as either SATA or IDE. IDE is what you need for your computer. Looking at the specs for the computer I can find no max size limits for the hard drive. Since you mention service pack two I am guessing you are using XP as a operating system. I can't recall if XP has a maximum drive size limit but it might.
If you want to remove the partition in your current drive without reformatting you will need software to help with that--Partition Magic is one good one but there are others. Finally you should be able to install the second hard drive, and the one you asked about should work. Ralph