Dell Inspiron 6400 and SATA III HDD?

I have an old Dell Inspiron 6400 laptop bought back in 2006.

I want reuse it but I have found that the internal 120GB hard disk (SATA I) has a lot of bad sectors on it.

I want to know... Can I change it to a SATA III hard disk or a SSD?

Will it work with the old SATA I chipset?

Thanks.