I am not sure how much longer it will live but it would make for convenient storage for as long as it lasts.
My suggestion to this is instead of using a drive that you know is on its last leg, buy a cheap used healthy drive and use that instead.
I have been able to pick up drives that are 120GB to 320GB used for around $12 with shipping included in the price.
My daughters system needed a drive because she was running on just a 40GB IDE drive and with Windows XP SP3 ( around 9 GB ) + World of Warcraft ( 25GB ) + 1.5GB swap(paging), 35.5GB was gone of the 37 GB that was available leaving 1.5GB free. I was able to buy a Seagate 120GB IDE HDD as a reconditioned drive off of
www.newegg.com for $12 with free shipping and it came with a 90 day warranty. The drive I bought over a year ago and its used daily in her system and have run flawlessly, and has no errors in the SMART log, although it has 32,000 run hours on it and 6700 boots.
I'd trust this used 120GB better than a known troubled drive for data storage. Using troubled drives I learned long ago was not worth the headache. I have been bitten before by using drives that I knew were acting up and on their way out = total data loss in my Pentium II 450Mhz. I was 3/4 way through this game and surprise the one day I went to play Diablo II and it errored out and then started to clunk. *** I shouldnt have used this drive that I knew had a bad sector count of 34. I assumed that the drive would work around this bad area of 34 bad sectors and the drive continued to fail slowly eventually sectors dying in important areas of the drive that the game resided.
Here is the monster sized BigFoot 4.3GB that I pulled from an old Acer 200Mhz Pentium 1 and had a total data loss with...
http://en.wikipedia.org/wiki/Quantum_Bigfoot_%28hard_drive%29Here is a drive for $21.99 with free shipping and 1 year warranty. They have cheaper drives available as well. This is best I found for cheap + warranty.
http://www.newegg.com/Product/Product.aspx?Item=9SIA5AD1R99103&cm_re=IDE_hard_drive-_-9SIA5AD1R99103-_-Product