Questions on a Dell GX240 tower for my application

Hello and thanks for any help you can provide.

I need to make up a small data archiving station that will "draw" large
video files from several Dell desktops on a daily basis.

I'm looking at using a Dell GX240 tower (P4 maybe 1.7Mhz) that will have
the space to allow for me to install two 1T hard drives internally on
the secondary IDE cable. I will be running W2K-SP4.

Questions:

Does the bios of this system support large hard drives up to 1T per? I
have had issues with the older Dells not supporting more that 137gig and
do not want this problem, here.

Any reason why I cannot run two 1T IDE drives off the secondary IDE
channel (placing the C drive and the CD drive on the primary channel)?

Any suggestions to improve upon this system will be appreciated.

Thanks!