need help with crashed laptop and Windows Easy Transfer

My Compaq dv2000 laptop burnt up after water was spilled on keyboard. So I bought a new windows 7 toshiba satellite t135. I managed to remove the old 40 gig 2 1/2 hard drive from the Compaq and bought a Vantec USB kit that connects to the old ide compaq hard drive. When i plugged it into the usb on the new toshiba it recognizes it and i can surf through the old files i want to restore but it sees it and the new drive on the toshiba both as "internal drives" or local drives, not external, when I go through the wizard on WET. From what I can tell, the Easy Transfer only works with external drives? I watched a youtube on WET and I'm not ever getting a "file" to transfer off of the old PC. I have gotten to the point where I can drill down to each individual files and transfer one at a time but that will take forever and not transfer my settings and email info, etc. When I firt bought the vantec adapter, it said that WET had to be installed on "both computers", so me like a dummy assumed the old hard drive would be consdiered "old computer" and I downloaded and installed WET on that old drive. I also have it installed on the new drive. I wonder if there is a way to (or if I need to) deinstall from old drive? I have attched a picture of the WET screen hwing the two hard drives. D is the old one; notice both are local.

Any ideas?

so does this mean the old hard drive has to be in a "computer" as opposed to just connected by an adapter? Hope not bcause the computer is fried (no power).

that tutorial says that when WET asks "what computer are you on" it says to select "this is my old computer". When I do that it starts scanning my new computer (the toshiba). Is that what I want to do?

screenshot

ryo, I did let windows check it, and that last attched screenshot is what it found, unless I'm not understanding what you mean by check it

it takes me to a screen that lets me custom select what directories/folders i want and so I unchecked everything having to do with C drive and also "shared", but then selected the entire D drive. It estimated file size at about 30 mb, then I tried to hit "save" and got a message saying "you cant save here"

heres some screen shots showing what it did. I cant figure out where it tried to save "to". Also note size is 80mb, not 30mb