The existing HD that came along with my MacBook (Intel, 15 months old) doesn't get detected anymore and Apple Care tells me that I need to have it replaced. The reseller's quoted price for the new HD seems to be way too high.

Can I have a Seagate Momentus SATA notebook HD installed instead? That is a 5400RPM, 3Gb/s interface drive which comes in various capacities. I plan to have a 320GB one installed (the original Hitachi one on my MB was 80GB). What other specifications do I need to look for perfect compatibility?

Also, how do I format the freshly installed HD to Mac OS Extended (Journaled)? With a fresh HD inside, will Disk Utility provide me with a facility to change the file system to Mac OS Extended when I proceed to install Leopard on the new HD? I have never done this before and so I have no idea.

To put it shortly, I need to know if I can go ahead with having the Seagate HD in my MacBook and if yes, what are the things I need to do and check for?
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Suresh Kumar