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#11
I wouldn't use the ipod, you've got plenty of space on the 500GB HD.
If you make a backup image of the old HD with XP on it and anything goes wrong you can restore it in about 20 minutes. Everything will be as it was before.
Down load this free program <Macrium Reflect>, it's a very good backup program. Find the tutorials on their web page, they will explain how to make the backup and restore it if needed.
Make at least two partitions on the new HD, as ignatzatsonic mentioned, the first one should be for your new Win7, 70Gb will be enough.
The second partition with the remaining space, you can keep your personal data there. Put you backup of the old XP Hd in the second partition, just make a new folder called XP backup. keep the backup until you are sure that the new OS is running well.
Reply here if you have any questions.