1. Depends a lot on system and drive.
Many older motherboards do not support the new large hard drives.
If this is true for your system, you may be able to use the utilities from the drive mfg, or you may want to add a PCI IDE controller card.
You need to check the jumper settings on both drives to verify that your present boot drive is set to master with slave present, and the new drive is set to slave.
If you are not using the drive mfgs utilities (I only use them when absolutely necessary) you need to run fdisk to partition the new drive.
There are a lot of good information links at www.fdisk.com/fdisk
Another source for good information on fdisk and partitions is www.aumha.org
MAKE SURE THAT YOU HAVE THE CORRECT DRIVE SELECTED!
If your present drive has 2 or more partitions, you may want to set up the new drive as an extended DOS partition, and define logical drives.
This way, your existing D: drive will stay the D: drive.
2. You can easily move DATA files using Windows Explorer.
Right click when you drag, and select move or you will simply copy the files.
In most software packages, you can set the default path to open and save files.
3. You CANNOT simply move Windows or any APPLICATION software to the new drive.
You will need to uninstall it from the current drive, and re-install it onto the new drive.
To even copy Windows for a backup, you will need to boot into DOS as some files cannot be copied or moved when Windows is running.
Chas