It appears to me that it works.
I used a 20GB Barracuda III for a test drive.
Ghosted an XP installation onto it. Loaded Ghost. Did an update to 7.793 (slightly newer than the article suggests).
Followed the procedure: Booted off HDD-2 (on a GA7VAXP), loaded Ghost. Started a backup. Restarted and immediately shut down (just in case). Rebooted, set the boot order to boot HDD-0...
Loaded disk management on the original drive.
Sure enough, I see an 18.71GB primary partition, an 8MB partition labelled VSsomedamnthing and 11.83GB of unpartitioned space.
I configured it as an extended partition, formatted it NTFS and... there it is.
I then dumped ~10GB of AVIs onto it. They play, no data corruption or anything.
Rebooted, set the BIOS to boot off HDD-2 again, loaded XP from the "expanded" drive. That also worked fine with no apparent data corruption.
The only obnoxious part is that I have two extra drive letters. One for the VSwhatever partition and one for the "extra" space.
I watched a couple of the AVIs @ 32x fast forward with PowerDVD. They really are there, and there's no apparent data corruption.
Loading Partition Magic v8, the drive shows up as "BAD" when PQmagic attempts to access the drive. Eh. Whatever, I have a 20GB drive with around 28GB of stuff on it.