Thanks everybody. I appreciate everybody's advice and opinions.
For posterity, I agreed with most of you that the drive should just go through the shredder, but the company is cheap and bureaucratic, meaning we have to use encryption, shredders, etc for all data, but when it means throwing something that in 1990 might have been worth something, 40 forms have to be filled out and it needs the Pope to sign it's death warrant.
They said if I want to destroy it, I have to pay for it. Not bloody likely. I work for pay. I don't pay to work. It's their company, their data, their risk. All for a 4200 RPM 40GB drive. Ridiculous, but they believe the hard drive is a company asset just because it is technology.
I am sending the hard drive in as ordered. It's their data, and their risk. I have covered my butt thoroughly on this one and wash my hands of the mess.
Thanks.