I was thinking of using a disk image. I wanted to create an image of my current disk and put it on a bigger hard drive. Currently I only have Windows 7 and all the software I intend to use like Microsoft Office.
My question to you all is just how good is this option. If I ISO it will be my first time using it and I am wondering if this is a good option or hokum.
Not quite clear on your intent.
Do you intend to have this other "bigger hard drive" as a bootable, working, ready-to-go spare in case your current C drive fails? That's not how images are normally used. That sounds more like a clone--which has its own problems.
The standard way to use images is to make an image file of certain partitions and store that image file on some other drive. Leave it there unused as long as things are working well. This image file is not bootable. The other drive on which it is stored is just a storage spot--the other drive likely isn't a bootable drive either.
As WHS says, imaging doesn't create an ISO file. Macrium is an excellent tool for the job.
The other drive doesn't have to be a "bigger hard drive". It can be smaller or any size at all, as long as it's large enough to hold the image files---which are considerably smaller than the partition that they represent.
It works pretty well, not foolproof. You should make new image files periodically, depending on how much your system changes from week to week or month to month.