To replace the hard disk you only need to replace two blobs of thermal paste which is widely available and cheap.
The iMac uses a standard desktop PC hard drive. It is 3.5" wide and in the iMac G4 uses the IDE connection. The iMac 17" 1GHz has an ATA100 bus so can use ATA100 or ATA133 drives but not SATA drives. You should buy a 7,200rpm drive with a cache of 8MB or greater as this also increases the speed.
I have one of these Western Digital hard drives in my iMac G4 (1.25GHz) which I bought 2 years ago for twice the price. You can go for a larger capacity if you wish.
320GB (link).
It's pretty fiddly to work inside an iMac G4 so you must be cautious especially around the video cable. Always take anti-static precautions. Here are three options for guiding you through the procedure:
I've also taken a fair few photos which you can find here.
I'd advise reading the reports on the xlr8yourmac's drive database so get other people's experiences first.
You must replace the Thermal Paste when you close the iMac up or it will overheat.
It's probably worth replacing the PRAM Battery whilst you're in there as these have a finite life (once they fail to re-charge you may start to run in to snags - it's only a £6 part).
The hard disk should be set to Master (link).
You might also give consideration to installing an 18x DVD±RW Dual Layer burner (link) whilst you do this update, which will have to be removed during the process.
You must be very careful around the video connector in the iMac; it really is very fragile. In fact there is no need to touch it at all in my experience.
cheers
mrtotes