Clean install onto new drive

I just wanted to get some confirmation on my
procedure.

I have win7 rc running on one of my 2 ide drives, with XP on an SATA drive - dual booting.

I purchased a 500gb SATA drive to replace the the 2 ide drives

The plan is to:
- connect the new drive while shutdown
- boot into XP
- Partition new drive, with the first partition active(with partition Magic).
- Transfer non-OS partition data to the new ones
- shut down and disconnect the ide drives
- insert win7 disc and perform install on first partion of new drive.

I understand that the MBR is on the Win7 partition.
Will I have any problems with the XP install, or will the new win7 install create a new MBR to allow dual boot?

I know I'll have issues with drive letters. But other than the XP, and Win7 partitions it's just data - no programs.

Or, are there any other problems you see with my procedure?