Easier way to copy things over would be to download Norton Ghost 6.5 evaluation. Full version, but with a 15 day expiration. So, you have to make the image and ghost it over within 15 days. Also, doing this will nuke everything on the destination drive.
I've read about big problems with Xcopy in that it doesn't handle long file names correctly. Some times it does, some times it doesn't - bottom line is that it isn't reliable at all and you don't want to learn about it 2 days later when you've deleted stuff off your old drive.
Main thing to remember, use fdisk to set the new drive to active when you put it in place to boot from.
-Jason