I did this hack on one of mine A590 and worked just fine. Be sure to have a heavy power A500 supply.
I guess using a solid-state drive would be helpful too, such as a CF card inside a SCSI Card reader like the ones in Mech's store?
http://a4000t.com/store/index.php?main_page=index&cPath=65_79I have an A590 here that I'd like to use on one of the A500s, and I'm really interested in getting this mod done so I only have to use the one PSU too. But rather than search for a new hard drive to replace the 40MB one in there I'm going to use a SCSI card reader instead.