Do you have the 100GB attached to the laptop via USB or Firewire? To do this you'll either need an external enclosure that will accept a 2.5 drive or a connector such as I previously posted. If you're going to use the old drive for external backup, I'd get an enclosure. If you have it connected to the laptop, is it recognized in My Computer?
I'm surprised the Restore CD does not have those features. Usually the Restore CD that comes with a computer is a Clone of the computer when it is shipped, i.e., should create the partition and give you all functionality. If you got a XP CD instead of a Restore Disk, XP does create a small backup partition for the Restore function but not sure if it's accessible using Ctrl F11. My wife has a Dell 1505 and I formatted and reinstalled Windows as soon as she got it to get rid of the crapware. I installed the drivers and utilities from the CD(s) from Dell. I know the media direct button works because I accidentally hit it a couple times when I was starting the computer, drove me nuts trying to figure what was going on. I've never used the Ctrl F11 so don't know if that works. I'm defragmenting the machine right now and can't test it.
Do you have the restore CD or the XP CD? If you haven't done so, you could install the 100GB and then use the restore CD or install from the XP CD and Dell driver/utility CD and see what happens. If it doesn't work, you can always reinstall the 60GB and work on the Cloning