I hope that there are still some computer jocks here - and I do need some help!!!

I built this "big" desktop about 2.5 years ago then rebuilt it with some newer and better stuff - that is all but the hard drive. Now my hard drive is due for replacement with a better and bigger version so have just ordered a Western Digital WD6401AALS (640GB) Black to replace my WD 300GB Blue. The existing HD has just started to make a death rattle as well so better (as well as bigger) is appropriate at this point.

A question now - can I just install this HD in my case, choose it at startup, install my Windows XP on it then drag and drop most of my other information and possibly the programs? I'll save/backup as much as possible via CDs just in case. but, since I'm lazy.......