That hard drive is OK for games, but it wouldn't hold very many. It might also slow some of the higher-end games down. Like Raffaz said, look into a Raptor.
It depends on how much you are willing to spend. I have a Seagate 250GB 7200.10 and it doesn't bother me one bit. I've only used about 65 GB and have a bunch of games loaded.
Seems like it was about what I paid for mine. Which was SATA 1 http://www.newegg.com/Product/Product.aspx?Item=N82E16822148144
No probs at all with it, except for when I set my PCI-E bus too high and it messed up my Windows installation. Overclocking = bad for you if you don't know what you are doing.
The question is, whats the rest of your system like? Upgrading the HDD isnt gonna make it a good gaming system if the rest of the system isnt up to spec.