Mike,
I recently installed a 2nd, ITB Seagate SATA in my dual core XP machine. Seagate's installation CD made it easier than I expected. My goal was to have it as a copy destination for important files and to direct all the large video captures to it. All of my programs still run from the C drive. Are you going to use yours for mass storage or do you wish to mirror your existing drive? I think that you will be pleased with how it turns out. I think you can make a boot CD like you used to make a floppy.
Joe