Drive Image 2002 is what I use. It is perfect for the job.
Either way you create the image, you have to do a few things to make life easy when time comes to replicate it on the new drive.
Install the new drive and disconnect the old drive from the PC. Go to the BIOS and put the new drive in the boot priority list ahead of everything else.
Restore the image onto the new drive. If you make the image from the first partition of the old drive, make sure that you restore the image onto the new drive at the beginning of it so that it ends up being the first partition. Otherwise, your boot.ini will not be valid and you may not be able to boot.
After you restore the image, reboot and you will be fine.
You can then, connect the old drive and use it as storage. But, you will not be able to boot to the old drive unless you switch the boot priority again.