Questions about IDE connection.

Is it possible to use one IDE header to connect an IDE hard drive and a DVD drive? If so, who should be the master or slave? What could be the problems if doing so?

I am looking at a new motherboard which has both SATA and IDE connectors. I have an old (but healthy) IDE drive (60 G) and a new SATA drive (500 G). Should I install the system on IDE or SATA? Does it really make a huge difference in terms of performance?

Thanks.