I have a V2 2000 (actually a Dell Powervault 701N). Here are my specs.
Model Software Hardware Server # BIOS
2000 series 4.0.830 (US) 2.0.0 58328 2.0.282
I was able to upgrade to (2) Western Digital 250gb EIDE (ATA100) drives.
This is the drive I used. I set them both to master, because that is the way the original (Maxtor 80-gb) drives were set. It recognized and formatted them automatically.
It took all night to set up the Raid 1, but all is working perfectly.
I also upgraded the RAM. I used a 256mb dimm, but it only seems to recognise 128mb. Still, it should be better than the original 64mb.