Yes I use the Gold CD's as well.
I finally purchased a 160GB Western Digital My Book Harddrive for $86 (inc Tax) in Bestbuy. Not a bargain like online, but a good enough price for buying locally.
It has Windows 98 drivers as well but doesn't seem to work with my old Windows 98 PC. I then learned of the 137GB limit in Windows 98 which made me wonder why they produced drivers for this model. Even partitioning doesn't help supposedly as it cannot Physically read above 137GB.
I will hack around this weekend to see what I can do. If not, no big problem as I will just use my WinXP Laptop. It is listed as also working with Windows Vista, so should I finally bite the bullet and get a new PC, it should be fine as they are starting to come with Vista now.
If it won't work with my Windows 98 I think I'll just go ahead and format it to NTFS as it copes with large files unlike fat32 and also it appears Linux can finally read NTFS drives now as well.