-how do I move the unallocated space from disk 1 to disk 0?

icnic:
(Screenshot)
http://i52.tinypic.com/2zzrpg9.jpg
I'm not sure I follow what you're trying to achieve.
Your current 350GB Disk0 has your "system reserved" and your Win7 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 Win7 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 Win7 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 Win7, so that the Win7 install actually builds a new Win7 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 Win7 reinstall, I would think you'd still get the "system reserved" (as "active" and "primary") on that first hard drive, and then the Win7 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 Win7/C on your second hard drive??
Please explain what your real "swap" goal is.