Never seen that before, I assume you would mean replacing the DVD drive assembly with a HDD? There is the HD Combo kit which lets you use a 3.5 HDD. I've no idea if these are still available anywhere, but I think it's pretty cool looking, especially in white.
The white one reminds me of the Snow White design Apple had starting with Lisa series 2/ Mac II. Very 80s, I approve!
You can't just do it with any-old PS2 Slim. You need a version 12, or version 13. Version 12 has a laser problem, so you'll probably want to do a fix for it as well. Version 13 doesn't have the problem since Sony fixed it, but it has BIOS compatibility issues which prevent some games from working correctly. Like Tekken 5 for example.
the Phat PS2 are superior in quality in my view. I love mine, although I rarely use it - it just looks so awesome.
It's all about space saving... I got a 3.5 on my fat, but i want a slim with an internal 2.5, just wondering if anyone ever saw one with one internally.
i was thinking about using a dremell to shave down the heatsink a bit, or maybe even use one of those ipod hard drives....
http://www.engadget.com/2008/08/27/samsungs-spinpoint-n2-drive-gets-a-glossy-black-case/ 120gb seems big enough.