You can also add any number of other computers to the network. Cable modem or DSL can join the home network to add Internet access. This allows quick transfer of data. The old programs will not run off of the old drive. The drawback of this is that you start off with old versions of the programs and an old version of windows without any of the drivers for the new hardware.
Hard drives die with age.
There are a few other programs of this sort on the market as well. We just purchased a new Gateway computer and need to transfer the information from our old computer to the new one. If you can do this in 250 meg portions, then the easiest way to do this is with a zip drive. Use an external. If you've got files that are over 250 megs, and external Jaz drive goes up to 2 gig.