I got a 160GB drive working, the kernels with working LBA48 support are at
http://downloads.phathack.com/sbingner/ (linux-lba48.bz2)
Unfortunately Phatnoise Media Manager does NOT work with these drives, and you REQUIRE the USB 2.0 cradle to access them properly. If you have Media Manager open, you WILL get disk read errors and the drive will not work. You MUST close Media Manager and use Phatnoise Music Manager to copy files to and update database on the 160GB drive. Phatnoise Media Manager, for some reason, actually looks at the USB ID of the cradle connected and apparently accesses the drive directly rather than using the windows interface.... PhatNoise kindly didn't include LBA48 in whatever custom code they use to accomplish this.
PS. I always have sucked at waiting... I just bought the Seagate 3.5" 160GB instead of waiting for funds to cover it. It fits perfectly into my DMS cartridge also.