Faulty HD, no OS disk -- possible to image to external?

My hard drive is broken, and I need a new one, however, I have lost my XP install disks, and would like to avoid buying a new one, as well as a new hard drive. Is it possible to image my current hard drive onto an external hard drive, replace my faulty internal hard drive, then put that image (with the OS) back onto a new hard drive?

Is this even possible, or do I need to find, or buy a new operating system disk?
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  1. It might be possible. (But I doubt it.) It just depends on what is wrong and how badly damaged the disk is.

    You have nothing to lose by trying. I'd use Acronis.
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