I'm not sure I follow what you're trying to achieve.
Your current 350GB Disk0 has your "system reserved" and your Windows 7 boot partitions. The boot manager files in "system reserved" currently understands that the second C partition on that drive (using the remainder of the drive) is where Windows 7 is located, and since it's a 1-OS environment just auto-boots there without presenting a boot manager menu.
Your current 350GB Disk1 is "brand new?" and has nothing on it. All unallocated.
Are you trying to swap your Windows 7 partition off of the current Disk0 and put it on Disk1, thus freeing up the current 335GB on Disk0 for new data partitions yet to be created?? I would think there's no way to do that absent a reinstall of Windows 7, so that the Windows 7 install actually builds a new Windows 7 partition this time on what is your second hard drive.
If you leave the first hard drive (i.e. current Disk0) as "hard disk #1" in the BIOS, re-format that first hard drive (or "delete all partitions", say using Partition Wizard) before starting the Windows 7 reinstall, I would think you'd still get the "system reserved" (as "active" and "primary") on that first hard drive, and then the Windows 7 partition would be built on the second drive. Then the remainder of the first hard drive would now be "unallocated" and you'd be where you want to be, if I understand your "swap" goal.
What is the purpose of ending up with that configuration... "system reserved" on your first hard drive and Windows 7/C on your second hard drive??
Please explain what your real "swap" goal is.