Multiple Hard Drives Question

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Currently i have one HDD with everything on it (OS, documents, music, games, video, photos etc). I want to buy another HDD and put ONLY Windows XP on it. So my goal is to have 1 HDD with games, music, documents, photos, video and a 2nd HDD with only my OS (basically moving Windows XP from one HDD to another). The reason being is because i heard that this will make my system run much faster and more efficiently (is this even true?).

So what are the steps i need to take to do this, assuming that i will not lose any valuable information in the process.

thanks in advance!!

-Jason
Sorry to resurrect my old post, but i just bought a new WD 160 gb HDD and i plan on using this as my windows xp boot drive. But first i must reformat. Yes i've decided to reformat (I've never done this before) instead because im noticing a decrease in performance from my computer. How do i do this? So since i've never done this before, i really dont want to mess this up.
My current HDD in the case is a Seagate 250 gb. Can someone tell me the steps to make it so my 160 gb HDD has my windows xp on it and so i can put games on it later. My 250 gb drive will be for everything else. I've heard of the term "partitioning" hard drives and that it makes it faster. should i partition windows xp so it's separate from my games since my games will be on the same drive? how do i do this? i hope im being clear lol. If you're unclear of what i just said ill draw it out for you lol
 
ok so im just going to make it a little neater
Currently:
1 hard drive
seagate 250 GB HDD - contains everything

....REFORMAT (delete everything from above and start from scratch? how do i do this to set me up for the next part)....

Future:
2 hard drives
WD 160 GB HDD - containing windows XP (boot drive?), games. (partition Windows so its "separated" from games? can i/how can i do this?)
seagate 250 GB HDD - containing documents, music, videos, photos, programs, everything else
 
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