This could work. USB 1.1 is 11mbit/sec, with a realworld transfer limit of 8mbit/sec or 1MB/sec.
the PS2's 24X CD-ROM runs about 3.2MB a sec, and 4X DVD-ROM at 5.5MB/sec.
Thus, you'd lose the speed advantage of HDLoader, but it WOULD work in theory, albeit slowly. If it's the only way to get a hdd on the PSTwo, and you REALLY REALLY want that 120GB, it's the only way. In that case, it becomes more of a annoying conveniance than anything else.
If at first you don't suceed, Pull the trigger again.
See bash. See bash run. See bash run GCC. Run, GCC, Run!