I would look at spending a little extra money and pick up the OCZ Solid 3
to run off your SATA III port.
As for how to set things up, I would recommend 1) unplugging your hard drive first, 2) switching your SATA controller to AHCI in your BIOS, and 3) install your SSD and Windows 7. After you have installed your SSD, plug back in your hard drive and format your drive (Follow the instructions in this thread: http://www.tomshardware.com/forum/265764-32-guide-installed-disk-system
I would recommend reviewing this site for further information on setting up your SSD... http://thessdreview.com/category/ssd-guides/