I just did the same thing. I went crazy trying to copy the old small one to the new large one. I tried for hours and hours doing stupid stuff. The utility from the HD manufacturer was worthless. I tried installing Windows XP, then using the File and Settings Wizard, then copying all the files. That was moronic. Of course, since it didn't work the first time, I repeated my stupidity as if the outcome would be different.
You definitely need specific software. I downloaded and used "Casper XP" for about $45. It was worth every penney. It worked as it was supposed to the first time. The new large HD booted properly the first time and every time since. It was a perfect transfer down to the smallest file and setting.
Good luck. Use something like Ghost or Casper (get it?).
HONK!
Gooss