I will describe my successful software procedure, since the above article by Thai Tan did an excellent of job describing the hardware replacement.
(1) Preparation
Clean up your old hard drive to prepare for an efficient image. You don't want your brand new HDD to be clogged with all the junk from your old HDD. So clean it up before imaging the old HDD. First, move most of your data files except daily used files to the external drive. This will be your photos, videos, music, books, downloaded programs, etc. Then remove as much as possible programs you are not currently using. Second, run disc clean up and defrag your old HDD overnight. Delete temp files and software installation files. Empty trash.
Download Seagate's DiscWizard. Save the installation file to your portable, external drive (you will use this again later). Install the utility on your old HDD. Create a system recovery point of your cleaned up windows and programs state. Test the 2 recovery DVDs to make sure they are working by inserting them into the DVD drive.
(2) Create HDD Image
Run Seagate DiscWizard from you old HDD. Select Image Backup, Discs & Partition, check boxes next to C: drive and MBR (master boot record) zero drive. (Do Not check "sector-by-sector" box. This includes empty storage space in the image.) Select destination drive (external HDD). F: drive in my case. Filename, MyImage.tib. (Note, keep the name simple, 8 letters or numbers, no space or underscore.) Select "Create a new full image." Use default options, comments optional, click Proceed. I had 25 GB of programs and windows system files after my clean up. Image took about 1 hour to create on my USB portable drive.
(3) Physically replace HDD as per instructions.
First, printout instructions from Thai Tan's article. (http://laptoplogic.com/resources/detail.php?id=43.) If some of the screws are stuck, use the pliers to help you slowly turn the handle of your mini screwdriver. About 30 minutes.
(4) Use Sony Recovery DVDs to install Windows XP and original programs to your new HDD. About 3 hours.
Insert DVD 1. Select restore c: drive option.
To keep this to a few hours, you need to disable Sony's HDD shock protection utility as soon as possible. Something about the faster 7200 rpm HDD trips the HDD shock protection program every second. This stops the disc for about 2 seconds and the disc spin is slow when it starts up again. You can imagine how crippling this is to the new HDD.
The recovery DVD first creates the 5 GB recovery partition and the MBR (master boot record) zero partition. Then you need to remove the DVD and restart the computer. Then you reinsert DVD 1 to load windows system files. At some point, Sony's utilities get loaded, including the awful HDD shock protection. Forcibly stop the recovery process when you think windows files have loaded but not all of Sony's original applications have loaded. Most of applications are on DVD 2, so you can stop the recovery process before inserting DVD 2. If you can, right click on HDD shock protection icon (bottom-right task bar). Uncheck enable box. If this is not possible, use Start, All Programs, then find the HDD shock protection utility. Uncheck enable box. Once it has been disabled, you will hear blessed silence as the constant clicking sound from the HDD starting and stopping will go away.
Insert DVD 2 and continue to install Sony original applications. Reboot and test some of the applications when finished. Open the browser and test the internet connection.
(5) Install and run Seagate's DiscWizard on the new HDD. About 2 hours.
Click on the installation file saved on your portable, external drive. Reboot and run DiscWizard from the new HDD. Select Image Restore. Select your external file as your source, F: MyImage.tib. Select C: drive, Restore disc or partition, select C: drive. Select as target your new HDD C: drive. Restore active primary. Next you can select partition size. I used 50 GB as my C: drive partition. Later, I assigned the remaining 150 GB as a separate data partition. When finished test your system by running some of your own applications.

If all goes well, you will be able to have an efficient and large 200 GB of brand new HDD in about one day of work.
If the above does not work, you may try also restoring the MBR (master boot record) zero drive. I think my final successful trial did not restore the MBR 0 drive, but I could be forgetting this. I did restore both C and MBR 0 drive in my first attempt.
My computer was responding very sluggishly after my previous attempts (using DiscWizard and Windows Backup utility) and startup took 45 minutes. I spent 3-4 long days. I swapped the old HDD and new HDD back and forth about 4-5 times while trying the get a good version of old HDD files to transfer over correctly. I suspected a fragmented registry and bought Iolo Technologies System Mechanic Pro to try to fix this. However, repeating the entire imaging process, using procedures written above, solved the problem. Now startup is about the same as before, 1.5-5 minutes depending on what I have loading, and programs respond quickly.
Alternate method using Windows Backup Utility
I also tried to transfer my files using Windows XP's built-in backup utility. Start, All Programs, System Tools, Backup. From the Backup and Restore Wizard, select backup files and settings, all information on this computer, destination F:/, filename MyBackup.bkf. It's very important to use a simple name here, 8 letters or number, no space or underscore. This backs up the system state and all program files as well as your data files. It does not transfer your browser settings or bookmarks. If you choose the custom backup option, make sure you check the box for "system state" at the bottom of the scroll box to transfer your windows settings.
I had used this successfully to transfer all programs & windows state from one HDD to another a few years ago. At that time, everything worked flawlessly. I like this utility because I can restore just some of the programs initially and restore the rest when I need it. To use this utility, your new HDD needs to be the same or larger size as the original HDD. This time; however, I ran into problems because I used a long name with an underscore. Three of my programs did not install correctly on the new HDD and caused a slow startup with error messages. The majority of programs and windows systems did install correctly. So, I think this method will work as long as you use a simple name for your backup file. Takes many hours to make a backup file even after reducing GB size, so run it overnight. Also, the new HDD size was set to 88 GB and not 200 GB. Will need a different software to allocate the rest of the storage space to a 2nd partition.
Summary
My opinion on the whole HDD replacement experience is that it's too much work just to get a slight increase in speed. However, it may be worth it if you are looking to increase storage by 110 GBs. As a byproduct, I ended up getting a much cleaner and efficient HDD as result of cleaning up old junk and partitioning the drive into a small part for programs and daily used files and a large part for media and long-term storage. (See Part IV for tips on speeding up your computer.)
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