Give us the specifications of the "old" computer and the new hard drive you want to copy to. There are many programmes (free) that will do what you want, xcopy, xxcopy, xxclone etc. But we need to know the specification first.
Simplest software to use isCasperXP and DRIVE2DRIVE for Win XP and WIN98 from click here which only requires hooking new hdd as slave and after transfer is complete rejumper as master in place of original. Both available for $44.95 from USA. Software downloaded in couple of minutes.Works perfect.
Ah, that is not so easy. You said you wanted to copy old disk to new disk. Not old computer to new computer. There is a big difference. It can be done but will a lot longer. Your best bet is if the new computer comes with an operating system already installed, just install your old disk as a slave and copy any files you want to keep to the new hard drive. You wont be able to copy the settings because the new computer will probably have a completely different motherboard, graphics card, modem, sound card etc.
Since you have such a small hard drive, it may be simpler to copy your files to CD. Even if you do not have a CD writer, they are relatively cheap and you could put it into your new computer as a second CD drive. As far as settings are concerned, it is as pj123 says. Also worth getting XP with your new machine; it is so much better.
I think you are getting confused here. If you buy a new computer, presumably it will already be setup and running. Your old computer settings will be irrelevant. The only thing you will be able to transfer from your old PC hard disk will be your own personal files/data. If you want the programmes from the old PC you will need to install them from the original CDs on to the new PC. CD Drives don't need drivers. CD Rewriter drives only need a burning programme (which is usually bundled with the drive).