How I copy my old Harddrive to a new one

Ok, here is the deal, I have a Western digital 80MB hard drive with Win XP Pro, but I need to change to a new Hard Drive same brand only this edition came with the 8MB cache memory, I want to make a ghost cloning hard drive to hard drive, the thing is that I don’t want to lose my programs installed on my old Hard Drive, My questions are:
How I can do this? is there any risk? Do I have to use sysprep before I cloning the Hard Drive?, now, after I cloning the hard drive I need to activate my winxp licence again?.

Please Help!