1TB is far beyond any 1998 machine may have ever expected to see. 1TB would and should be in the more advanced NTFS or for the Apple the apple file systems.

Nothing is truly wrong here. If you need something that works all around you have to reach for something in the Lowest Common Denominator or LCD. You'll want an 120GB drive formatted to FAT32 and NEVER TRUST IT as FAT32 is easily corrupted.

Nothing busted.

As to the 24 hours, the issue is pretty simple. Plugging an 1TB drive into systems that can't deal with such could corrupt the drive and you get to start over. There's a free lesson here.
Bob