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.
Here, I took the liberty of checking newegg.com for some good HD's:
That one would work fine with games, and it's pretty cheap as drives with a 16 mb cache and 160 gb storage go
and if you want to go out on a limb, try this http://www.newegg.com/Product/Produc...82E16822136012
. The Raptor is expensive, I know, but it would work great with all games.