ok. so problem one - get it formatted as FAT32 on the Mac with the MBR, copy the files onto it.
Problem two.
this will be trickier - how to get the PC to see the drive. FAT32 should be fine, the partitioning should be fine. Have a look at the drive, what are the jumpers set to. It should have directions written on the top of the drive. The jumper pins are usually next to where you plug the power in, and you want the jumper pin on the vertical pair of pins that tell it to use CS (Cable Select)
Now have a look at the IDE ribbon that you're connecting it to in the PC - which plug are you hooking it onto? the one in the middle of the ribbon or the one on the end? Are the plugs coloured? - black for the end one and grey for the middle? (this usually indicates the cable supports cable select). If they're both the same colour you'll need to set the jumper to Master or Slave - which depends on what the drive already on that IDE ribbon is set to - check that too - if the current drive is set to Master then the one you're putting i needs to be set to Slave or vice versa.
Plug it in, make sure the cables are in nice and snug. Boot up with the cover open. does the drive start spinning up? (this will check whether the drive is getting power)
When the PC is booting it usually displays a bunch of info about what it's finding as it goes along (before it gets to the Windows screen) Does it say anything about Master and Slave drives being present on IDE channel 1?
Optionally, there's usually a key you can press during this phase F12 or Delete or something that lets you into the BIOS configuration and you can look there and see whether the drive has been found or not.
Report back answers to as many of these questions as you can if none of this works.
If the power is going in and the jumpers are set correctly then there are other things to look at, but check these first.
I don't think the drive is stuffed (at least not yet) because the Mac is having no problems with it.
FWIW i don't think swapping drives around as a means of file sharing is all that flaky IF you know what you're doing, and you don't know what you're doing when it comes to networking. Networking would be a lot easier, but if it's beyond your capabilities for whatever reason, then so be it.
The main thing is to get your dad's PC fixed. And then padlock it.