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Yes, it's the same drive I have in my mid-2007 MacBook and it works great, and very quietly, especially compared to the Seagate 500GB drive it replaced. Even though the HGST is a SATA II drive capable of 3Gbit/sec, the negotiated link speed will be 1.5Gbit/sec, because that's all that particular MacBook chipset suppports.
You didn't ask, but your profile shows you still have 1GB RAM. While you're upgrading the drive, you might want to upgrade to 4GB RAM (2x2GB). Mid-2007 MacBook's only recognize 3GB, but there is a bit of performance increase by using 2x2GB instead of a 2GB and a 1GB module. And Macs are notoriously picky about RAM. Crucial.com and OtherWorldComputing (www.macsales.com) sell Apple-specific RAM that is guaranteed to work. OWC also sells hard drives and complete kits with tools and an external case to simplify copying the contents of the old drive to the new drive.