Hi Conrad,
It's been years now since I had my 3200, but as I recall I had no problem replacing drive with something like a 8GB CF card.
Since it's been so long, I can't recall for sure whether I duplicated the drive onto the CF card or flashed it.
Changing drive is doable, but please be very careful when you do it so as to not break any cables, connections, etc.
Best,
Mark