Depends on what revision of the SCSI controller card you have. IIRC, revision 2 allows up to 1 gig on the hard drive. The hardest part will be finding a 1/3 height SCSI drive, which is what is required to fit in that bay. Prob. hard to find these days. I know the last time I checked Best Electronics had an 80 meg for $79. My drive was dead in my STacy too but I decided to go another route - I ordered one of the UltraSatans, and am going to try and put it in place of the existing internal hard drive.
You could search on Ebay for one of those 1/3 height SCSI drives. You might get lucky and find one working/cheap.