FYI... my WebPlayer is up and running with Win98 installed on a 9.5mm notebook HDD -- I was able to fit the drive internally ABOVE the mini-PCI area on the motherboard between the modem daughtercard and the RJ-11 jacks on the rear of the units (if you're looking at the picture from the i-hacked.com web site (http://188.8.131.52/iappliance/webplayer-mobo.jpg), it's the area in the lower right of the picture). - NO modifications to any shielding are necessary; I only took out the screw that attaches the rear shielding to the mobo/chassis in that area for an add'l 1mm or so of clearance. The machine has been used heavily with the modem on all weekeend without any heat issues.
I have my hd above mb and it's just sitting there where the modem was. I use dsl so took it out. I turned around the phone plug connector and placed a piece of padding under mb taped on 3 sides and it just fits right in there. I don't move the wp that much but with all the mods I've done I've picked it up and moved around a bit and the mb has never moved on me. With a thin piece of padding that you get when you buy a mb taped to it and the stiffness of the cable it should hold steady.
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