Would it be better for me to use a swap partition or to use a drive dedicated to swap use?

Option 1
256 meg partition on IDE Primary 120 gig ATA/100 drive
7200rpm, 9mS seek, 4.2mS latency, 8M buffer
Everything else would be on this drive too.

Option 2
IDE Secondary 730 meg, supports DMA Mode 1 (13.3)
4495rpm, 10mS seek, 6.67mS latency, 128K buffer
The drive would be used exclusively for swap and paired with CD drive.

Option 3
IDE Secondary 850 meg, supports DMA Mode 1 (13.3)
4500rpm, 10mS seek, 6.67mS latency, 64K buffer
The drive would be used exclusively for swap and paired with CD drive.

actually....it really don't matter....judging by the fact that you have a 120gig drive i would assume you have a half decent box with enough ram, so all these options really don't matter how you do it.

As you have two disks, make sure you have a look at

Multi-Disk-HOWTO

to see how you can improve disk performance by, for example,
putting /usr on one disk and /usr/lib on the other.

As for swap, the best thing is to have two swap partitions --
one on each disk, and then prioritize them in your /etc/fstab.