Wisegi,
If jumpers are set correct, and your bios recognizes the new HD, then you're all set to continue.
If it doesn't then go look for a BIOS upgrade for your motherboard. However, a P4B motherboard should support large HDs, so there should be no problem there.
Jumper settings:
As suggested, setup the new HD as master on first IDE channel and change ye olde one to be slave. Then partition and install a fresh system on the new HD.
When you have a fresh and working system installed, I recommend that you use Norton Ghost (or another DriveImage application) to take a snapshot of your system drive -doing that, it should take you less than 10 minutes to restore your system.
Good luck §;O)
Jakob