yes it can be done. i have done this with two hard drives now. this is the guide that i used the first time. xbox hard drive in pc
. the second time i had to do things a bit differently.
***This is only if you have Windows XP***
What i did the second time was boot the xbox with the original hard drive.
unlock the hard drive in evox
pull out the ide cable from the hard drive but leave it powered on. (This step can kill the hard drive, just because it didnt happen to me doesnt mean it wont)
plug the ide cable from my computer into the original xbox drive
boot up the computer
Open up Drive management Start>Control Panel>Administrative Tools>Computer Management>Drive management tab
You can now set up, partition and format your hard drive.
EDIT: The hard drive must maintain power from the xbox untill you have set up and formatted the drive to work on your computer. After you have done this shut the computer down and the xbox the connect the hard drive to the PC PSU.