Yes, it will. Heck, you can even put in one of the newer 160GB drives. Just make sure it's a 2.5" drive, and you'll be fine! Oh, and make sure it's not a SATA drive, as they're making those for laptops now.
I performed this operation myself on my TiBook. It was relatively painless. A drive from newegg will probably be the place to look...get a 2.5" hard drive enclosure for that 60GB drive too