harddisk upgrade

I have 2 PCs, win2k and winxp pro. I mainly use winxp and have all my
software installed on. win2k is only used for checking up some software that
run on LAN. Now both of them are running out of disk space. I am thinking of
buying a new one for winxp and swap its harddisk to the win2k. Here is the
procedure I am thinking of. Hope somebody can let me know if it is ok.

Both PCs use IDE internal drives and NTFS. The winxp has these disk
assignment:
c: primary master partition 0 housing both system and software,
d: RAID card on PCI to 2 drives,
e: primary master partition 1 housing software.
f: DVD writer
The win2k is simply having 2 drives as primary master and slave
respectively.

Now the steps:
1. install new drive to winxp as secondary master.
2. partition the new drive into 2.
Question: My friend partition my current drive for me and I don't have any
partition software, or is there any partitioning function in the win2k winxp
CD that I can use? Is this the right order of steps to do this?
3. boot winxp, format new drive partition 0 with option /s and partition 1
without /s.
Question: Will booting winxp with the new drive change the winxp drive
letter assignment and make the installed software not working properly?
4. copy everything from c: to partition 0 and e: to partition 1.
5. power off, remove the old drive and install the new drive to IDE primary.
6. Steps for win2k is about the same and I intended to replace the primary
master with the old drive from winxp.

The software driver for the harddisk on both PCs are standard one that come
with windows. I have some compressed files but didn't have any encrypted
files. So I expect direct copying of disk contents should be fine. Please
let me know if this plan will works? Any valuable reminder that I should
know beforehand?