It may not enter diag. mode.
Yes, you can use an older drive. Just remember the files on the bad one will be gone and anything on the older one will be unplayable. If you go thos route, either format it in windows and then the D* receiver will reformat it for itself. - or enter diag. mode and format it there, Otherwise the files will show in the list but they will all be unplayable (except for OTA recordings, if any).