Using Dell Reinstallation CD for New Install

I've got a Dell Dimension 4550 that came (March 2003) with XP Home installed on a 60gb hd. The drive is about 67% full, and is set up the way I like it. However, I purchased a Seagate 160gb hd, and was going to image the 60gb onto the Seagate, and move the Seagate to primary, and put the original 60gb in the slave position. (I've also got a dvd-rom and a dvd-rw occupying the secondary IDE.)

But, I got to thinking...I'd like to put the 160 gb Seagate on the primary, and do a clean, or fresh, install of XP from the Dell reinstallation cd, and just put the original 60gb hd on the shelf, or perhaps use as a slave. I'd leave everything on it, as it is right now. That way, if I ran into any configuration, application, or driver problems with the new hd, I could just plug the original hd back in as the primary boot disk.

My understanding is that I can use the Dell reinstallation cd to do this as long as I am using the original machine, because the cd needs to recognize the Dell bios to properly install (or install at all). Is this correct? If so, what's the process, since I won't have cd drivers installed when I put in a new hd?

Thanks