Transfer System to New Drive?

[fivestringer]

I've got what I hope is a problem with a simple solution.

I've got a 3-year old PowerPC G5 with 2 - 320 gb drives. Everything is working fine for now.

I want to buy a new 1 TB drive and transfer all my system stuff to it. My problem is that I don't know the best/easiest way to do this.

Can I replace my existing second drive with the new, bigger one and use S/D to make a bootable image on the new drive, then swap out the existing main drive with the new one? That seems too simple to work.

I also have a 500 gb external FW drive. If the first method won't work, can I make a bootable image on the FW drive, swap out the old main drive with the new one, then transfer the image to the new drive? If so, what happens when I power on the system with the new, unformatted drive?

As you can probably tell, I'm not real familiar with the inner workings of Macs, so any advice is greatly appreciated.