In a word, yes. As SNGX has pointed out, sometimes it may be necessary to move a jumper at the rear of the drive to render it compatible with the older SATA 1 standard. There only a couple of SATA150 drives still on the market anyway, a couple of Western Digital "Raptors", but even these could be just accumulated stock at the merchant levels. There would be no earthly point in you buying one of them anyway.
Make sure you have all your "Windows" or "recovery" discs ready before you under take this project, This assumes you're considering making your SATA drive the principle drive, or OS (C) dirve, if you will. Sata (with XP) requires that you install SATA drivers during the OS install. In most cases, a more practical ( and much simpler approach) requires you to enter the computer's BIOS and set it so the computer treats the SATA drive as IDE. Many boards auto-select this run option anyway, but if during your install the computer tells you it can't find an HDD, this is most likely the problem.
Oh, and before you do anything, back up ALL your data. You will also be able to transfer your files from your old drive to the new one. Both Western Digital and Seagate have software available on their websites to help you do this. ONCE YOU HAVE THAT WORKED OUT, and NOT UNTIL, cou could then simply delete the Windows file on the old drive so that there is no boot conflict.
As a rule Newegg is probably the number one and possibly the best computer parts Etailer. Tiger Direct has a fine reputation as well. I get everything on line from Newegg, and the rest comes from Microcenter as they have a brick & mortar about ten miles from me.