The Windows OS CD does all that for you. Once the hard drive is connected, just put the Windows CD in the DVD burner and reboot. Everything else is pretty automated and there are several prompts that you need to input, that's it.
Most new retail hard drives come with a floppy that contains a utility that will format the drive and copy the entire contents of an old drive to the new drive. If your's does not have that disk, you can download the utility from the drive manufacturer's website.