I use an iPAQ h2215 with an IBM 340MB Microdrive that runs at 4500rpm. It is a drain on your battery life, and generates quite a bit of heat, but no more than a laptop would. It does not overheat, like some do when enclosed in a camera. There is absolutely no configuration required to use the Microdrive. Just turn your PPC off and pop it in. To remove, turn the PPC off and pull it out. That simple.
But, if you can afford solid-state memory (Flash), then buy it, it will give you significantly longer battery life and is more durable (no moving parts).