Yes. Upto 128GB. http://www.asuscom.de/support/FAQ/faq076_32gb_ide_hdd.htm
Personally I have a 45GB IBM 75GXP installed with 1014.003 BIOS.
If you boot from another smaller drive, I believe Windows can manage how to
run an even bigger drive than 128GB bypassing BIOS limits.
If you want to boot from it, the drive needs to less than 128GB.