An ATA133 controller certainly wouldn't hurt, especially if you need extra IDE ports, but I suspect the loss from running a single ATA133 drive at ATA66 would not be that great.
The "off the platter" sequential transfer rate rarely tends to be no more than half the interface transfer rate - although the higher interface speed may allow more effective use of the drive's cache - especially if an 8Mb cache model.
I would not recommend running 2 IDE drives on the same cable unless unavoidable, as IDE lacks the efficient multi-drive arbitration of SCSI.
If you put the drive on as ATA66, tested with HDTACH, and found the sequential transfer rate exceeded 50Mb/s (allowing for overheads) then I'd say you would do better with an ATA133
Depends on the price - if an ATA133 drive AND controller is an affordable combination, and you have a spare PCI slot for the controller, then go with it.
But if you want a bigger and faster drive (measure your existing one with HDTACH), I wouldn't consider the ATA133 controller a pre-requisite.
PS. ATA Controllers can be a bit iffy with shared PCI IRQ's, so best to use a PCI slot that doesn't end up sharing an IRQ if possible.
http://www.intel.com/support/graphics/gaming/SYS_drive.htm
This kind of backs up the point I was making - with a lower interface speed, you lose out on burst transfer from the drive cache, but generally do not lose on the sustained transfer.