Upgrading computer with important data

Hi

I need to upgrade a computer.
The new computer has been bought with Win ME and installed on a 20gb hdd.
I still need the information on the old computers hdd but it is running Win 98. Some programs on the hdd also need to be used still.
Myidea is to load ME and slave the 98 Hdd so that the computer boots to ME and Wins 98s Files is readable. The information files can then be copied to the new hdd until all the programs can be installed to the new ME drive?
When a program on Win 98 is needed they can boot to it with a boot disk?

Does any of you agree with my method or is there a better suggestion out there, there is no servers to do the backups to, only the one computer with the x2 hdd?s.

Thanks
Melt