I don't have experience with that iMac model, but OWC has a find compatible upgrades tool at
http://eshop.macsales.com/MyOWC/
Select your Mac model, and the type of upgrade, and it shows a list of compatible products they sell. You don't necessarily need to buy it from OWC, but you'll get a better idea of what's compatible.
You can also use a 2.5-inch SATA hard drive. The advantages with the smaller size drive are it runs very quietly, produces less heat, and uses lower energy. With less heat (and lower energy), your iMac's fans may run more quietly with less overall stress on the aging hardware (like the power supply). Modern 2.5-inch SATA hard drives are more than fast enough for a PowerPC Mac, and even 1TB size is quite affordable these days. SATA connector is the same for 3.5-inch and 2.5-inch drive; you just need a simple bracket that secures a 2.5-inch drive in place of a 3.5-inch drive.
You can consider SSD, especially if you find a good deal on an older one. I put one in my Power Mac G5. It's a "factory re-certified" 2.5-inch SSD from Crucial. No need to get the latest model. However, not all current SSDs are backward compatible to the earliest SATA standard. I got an Intel SSD for my Mac mini. Out of curiosity, I tried it with my Power Mac G5 (before putting it in my Mac mini) and it did not work.