Can an iPod Classic 120gb use a 160gb hard drive?

I recently received a 120gb iPod Classic from a friend that suffered water damage. I booted it up in diagnostic mode, ran all of the tests, and found that the only defective part of the iPod was the hard drive. I have a somewhat limited budget, so I'm trying to find the lowest price hard drive to replace it. Surprisingly enough, I found a 160gb hard drive for cheaper than most 120gb ones. However, the site claims "This HDD only for ipod Classic 160GB, it can't work on ipod Classic 80GB & 120GB, because of different interface." Is there any truth to this?