Here's how I have (had?  ) mine set up. (I say had because my mobo died)
I have a removable HD rack, and it sits on the back (where the power and ribbon cables go). I've not had problem 1 with the HD. It too is a WD drive, 20gb to be exact. I don't have any kind of shock protection at all, save for being vertical.
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Venomous MP3!
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CarMP3 system:
200mhz, 20gb hotswapable drive, 128mb, Winamp w/full-screen vizes, (upgrading to WinAmp3 in near future), 5" LCD screen, controled by numberpad, Sproggy PS under construction, custom mounting case under construction.
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