switching out hard drive

I'm about to switch out my hard drive, and got good advice here before...

I didn't get things started right, and I want to wipe the blackboard clean and start over so I get this right..

Here's what I have.. Windows XP Home, 80gig hard drive that's on it's last legs...2 partitions, C and D...C has the OS..

I have a 120 gig external drive(G drive)..New 360 gig hard drive that will replace the 80gig...No jumping..Only 1 bay for hd..

I backed up both the partitions and files and folders to the external drive, which I found out here was redundant..

I want to wipe the external drive clean, and start from scratch..

When I read the contents of G drive, I'm seeing 7 folders..File Backup Data,Symantec Recovery Environment, MY_C_Drive002,

MY_C_Drive002_i001, and 3 other backup folders..

I want to delete at least the Drive folders and start over..

Should I keep the File Backup Data folder and the Symantec Recovery Environment folder, or can I just wipe it all out and start over ???

I also need instructions on how to copy the drive and put it on the new hd...

My intention is to copy the old hd to the external hd, switch out the hd's, and recover from the external to the new hd..(please correct me if any of this is wrong)

I'm trying to be careful since this is the first time I'm doing this...A step by step would be mucho appreciated..