Yes, using the USB host hack. You will need to inject power into the usb circuit, as the nokia 770 does not have enough battery power to do this. There are how-to's on the maemo.org wiki. Also, I say yes it is possible, but I don't know if there are any drivers for the specific brand of USB HD you are trying to connect.
When I tried with my mp3 jukebox (which also acts as a self-powered USB drive) it was detected automatically (with the 2005 OS). I just had to mount the device manually.
Manually? you mean it doesn't do it for you? What a piece of crap, I don't want to buy it anymore. Wahhhh wahhh....sorry I just felt like sounding like the people that constantly ***** and complain about what the 770 CAN'T do...I'm done.
BTW, yes very possible. 60 Gig HD mounted in car for MP3s and Vids to take on the road with me, fed into the auxilery of my Eclipse head unit...awesome.