I have a Mark 2 empeg, and the replacement drive I threw in it a couple months ago seems to be toast. I picked up a 160 GB laptop drive, but I'm wondering what the size limit is for that model. Will the empeg see a drive that big?

Yes, if the instructions here are followed carefully.

Awesome! Thanks again Tony. Thought it would be smooth sailing when I replaced the drive a couple months ago, but looks like I'll be slogging through the instructions again Hopefully I'll have better luck with this drive than the last (it was reclaimed out of a laptop that a friend was replacing).

If you've done the procedure before, then it's fairly easy to do again, just remember to use Mark's latest builder and installer images for each of the steps so that it handles the big disk properly.