[X-Newbies] G4/AGP and 160Gig Drives

[Chris]

Hi all:

I have a G4 Sawtooth which I'm looking to use as a small backup server. 
I've been offered a 160gig Maxtor ATA133 which seems to fit the bill,
but I'm told there may be problems with any drive which is more than 128Gig.

It may be this limitation was removed with OSX 10.3 and up (I'm on
10.4.10) but has anybody any experience with this?

cheers,

Chris