It is a limitation of the IDE Controller (In fact all IDE controllers i believe) that only 2 devices may operate on the 1 channel at any given time. in this case, the DVD and HDD.
You would be able to run 2 HDDS with NO dvd drive with no problems.
You might even be able to put them on a 3 position switch (1st hdd + dvd player, 2hdds, 2nd hdd + dvd player)
Someone with more knowledge of the console than me will need to explain the BIOS side of this connundrum But there is the Hardware side of things explained.
Jalorathis
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