You may need to make a complete image of the drive and then 'tansfer' that image to the new drive. You will also require the boot media that these 3rd party programs have so that you can boot from USB/DVD and then specify the source (160GB HDD) and the destination (new HDD) and then set the new boot to active and MBR and all that other stuff to get the HDD to boot.
Then once everything is up and running, you can keep the original HDD offline and then if you wish then format and use an external drive for VM stuff.....