replacing small hard drive with a larger hard drive.

i bought a maxtor ata hard drive 160gb.(7200 rpm) I tried to replace the
old drive (28gb)by loading windows xp home/sp2 onto the big drive but
doesn't recognize the drive.I had tried downloading the software upgrade
(maxblast 4) for it but couldn't get it to run.It also said I need a version
of windows with Fat32 files system for drives over 32g ; but i got NTFS file
system on my computer. I got a pentium 4. cpu 2.53 ghz.1gb of ram.desktop
version.how do i transfer the operating system to the bigger drive?and get
rid of the small drive after i transfer all files and settings to the big
drive.I am just about to through my computer out the window,so any help will
do.Thank you.