Move HDD with 2000 to new PC?

Novice techie question – need to upgrade Win2000 peer-to-peer workstation, need to preserve OS and network/program settings. Any reason why I cannot simply swap out the hard drive from the old machine and install in new PC? Old drive is 30Gb Maxtor IDE ATA 100 in good condition – should plug and play if advanced graphic settings etc. are disabled, and when motherboard drivers are reinstalled, should pick up network settings. Will initially preserve Win2000 Pro settings, then upgrade to WinXP Pro. If precautions are taken (i.e. installing Recovery Console before swapout), I can’t see a problem in getting new PC to boot with old hard drive. Seems simpler than cloning or imaging the drive or doing a manual data transfer, or a Files and Settings transfer with XP. Am I missing anything?