Hello! Any 2.5" Serial ATA drive will work and they are very easy to replace in the macbook. If you have a MicroCenter or some other computer outlet store, you can find them for a very decent price and they'll also lead you to the right spot (I always have trouble locating them)
To install OSX:
After you have the new hard drive installed, turn on your macbook and insert the OSX install disk (number one of course) that came with your macbook while at the same time holding down the "c" on your keyboard. This will make it boot up from the disk and begin the process of installing the OS.
When it finally boots, choose English as your language and then go to the top bar and pick "tools". Now go down to "disk utility". When this window opens, select the drive on the left panel. On the right panel, choose "erase". From here, make sure the drive is formatted as "Mac OS extended (journaled)" (also known as HFS+) and give it a name if you so choose. Then click "erase". After this is done, close out of disk utility and follow the instructions on the screen to install OSX. Hope this helps! Feel free to ask any questions you may have.
Trent out