To answer your first question, maybe. It depends on several things. First of all, does your motherboard support ATA/100, and if not what's the fastest spec that it does? Does the 7200RPM hard drive?
Basically, you usually want the faster hard drive on its own IDE channel if possible. Unfortunately, the 10GB drive will most likley run slower than it did before sharing the channel with the CDROM drive. That's why you want to make sure that the 7200RPM drive will actually benefit from having an independent IDE controller. If not, put both hard drives on the Primary with the CDROM on the Secondary.
As for the cooling issue, it also depends. Buy a thermometer probe at Radio Shack and measure the temp just below and above the hard drive. Make sure the temp doesn't exceed 44°C. If it does, a cooling fan wouldn't be a bad idea.
Hope that helps...
~cdogg