That's a sweet deal for a hard drive.
The ribbon cable is called an IDE cable. Yes, connecting the other inline plug on the IDE cable will work just fine, however, if you have a second IDE channel on your mobo (the connector will most likely be right next to the first one) then use that. If your CD/DVD drive is connected to the second IDE channel, put the second drive on that cable as well. It does not matter which plug, the end plug or inline plug, that you use for either device.
Serial ATA's boast higher transfer rates than IDE's, and if you have SATA connections on your mobo, go with the SATA drive. SATA's also tend to be a bit more expensive, as with most newer tech.
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