You should be able to install the new hard drive in your computer without taking the current one out .
Then you can format it from windows using disk management options
and then you can clone the drive you have using Norton Ghost or Acronis True Image.
If you dont want to pay for the software you can download and use True image on a 30 day trial http://www.acronis.com/homecomputing/products/trueimage/
Its very good , it works well .
After you have cloned your hard drive you can check that all is good by disconnecting the power to the old drive and attempting to boot from the new larger drive .