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Will a previously used 20GB hardrive work on a new Xbox?

My Xbox 360 premium package (Xbox 360, wireless controller, all the wires, 20GB, etc.) has worked for 2 years. It failed and I don’t want to repair it and have to go through the whole process because its old and i beleive if i repair it, the same thing may happen again. So my plan is to buy a new 200.00$ xbox arcade system, just to get a new xbox. With this in mind, i want to keep the old 20GB hardrive from my old Xbox and plug it in to use with the new xbox i plan on purchasing. Does this sound like a plan that could work?