It's an excellent idea. I have all of my own comps, as well as most of my customers', with the swapfile (pagefile) on a used, older, second hd. No need to "test" anything.
After you get it physically set up, and recognized, format it in Disk Mngmt using NTFS. You get there through Control Panel - Admin Tools - Computer Mngmt.
Then, back to the Desktop, create your new pagefile as follows: right-click My Computer - Properties - Advanced tab - Performance (Settings) - Advanced tab - Virtual Memory.
Highlight your "C" hd and choose "No Paging File". Set
Highlight your "D" hd and choose Custom; setting minimum to 50 and max to 768. Set
Trust me on the settings. I've done a boatload of research on that, and they are the best compromise for all possibilities.
Then you'll be hitting Apply and/or OK all the way out to Desktop and reboot.
If you don't perform those tasks, XP will continue to use the "C" drive pagefile for everything.
BTW, XP will still create a 2mb pagefile on "C", but it will only use it during boot.
Then I set up the "purchased" defragment utility (I love Raxco's Perfect Disk) to defrag the "D" drive every boot. This will include the swapfile, and it takes about a minute. Keeps it nice and clean and efficient.