The answer to your first question is yes. The configuration you described is very typical. I happen to have mine set up that way too.
The answer to your second question is a clean, fresh install of Microsoft Windows 7 is the preferred method.
Hmmm.... I am a little bit confused about your last question. Assuming your 1TB hard disk drive is installed inside the computer case it would simply be another drive. For example your ssd would be the C drive, the 1TB hard drive would be the D drive, and an optical drive would be the E drive. That's just an exmple. Once the ssd is intalled inside your case start your computer and immediately go into the System BIOS before installing Windows 7. Make sure the BIOS is set to ACHI mode and the ssd is set as the primary/boot drive. Save the BIOS settings and continue with the bootup. Next install Windows 7, your drivers, and your software applications and utilities.
What I meant by the 2nd question was when you plug in an external HDD via USB, would the HDD be like that or detected as an actual HDD. Sorry I didnt make it clear enough, you answered my question anyway
To install Windows 7 would I have to get a new disk or could I just use the one I already have?(Windows 7 Home premium OEM)