From their specs I'd say you'd be better off with a 2.5" but not by much. Couldn't find the specific specs of that drive but other 1.8" seem slow. Of course we are talking milliseconds so it's not like it's that big of a difference but it won't be a snappy system especially if you're doing a lot of power management waiting for it to spin up.
basically they are fast enough but you wont be breaking any records with them.
If you look on ebay, you can find "broken" ipods from stupid people who just cant figure things out, or the ones where they formatted them wrong and you can buy a 40Gb or 60Gb microdrive for like $40. Not a bad deal. Just smash open the ipod and pop on a $5 converter also found on eBay for 1.8" to full IDE and your ready to go.
Fusion Brain Version 6 Released!
1.9in x 2.9in -- 47mm x 73mm
30 Digital Outputs -- Directly drive a relay
15 Analogue Inputs -- Read sensors like temperature, light, distance, acceleration, and more
Buy now in the MP3Car.com Store