Not surprising- some older BIOS's didn't support more then.. I believe it was- 40-bit LBA, which coincides with around 37-39GB of disk space.
My older, K6-2, for example, freezes on boot if I place one of my newer HDs in it. However, if I set the "cylinder reduction" jumper, it recognizes and can use the drive, but only around 40GB of it.
However what the techs say is somewhat self-conflicting as well as misinformative as to the reason- sticking a larger drive into it will be unlikely to damage the hard drive or the laptop- worst case scenario is the laptop doesn't recognize the drive and freezes.
In either case, it's a BIOS limitation, and has nothing to do with Windows or the operating system, or drivers, or any of that, as they appear to (inconsistently) claim.
Now that being said, you can stick the drive in, and use it, (if it allows for the "cylinder reduction" jumper setting as my drives have), but you probably won't be able to use it without it. (it is, however, worth a shot, IMO, since 2003 was around the time that the BIOS limitation limiting it to ~40GB was "lifted" so to speak.)