Question : Problem: Using second hard drive as storage...

I recently moved to a larger hard drive. The previous hard drive still has operating system and programs on it. Can I use the old hard drive(as a slave) to store data or install progarms, even though it also has windows xp installed? Do I need to do anything special to accomplish this.

Answer : Problem: Using second hard drive as storage...

Yes, but how large was that partition?  Sounds like it was for the full 120 - in that case, start over from scratch with it or purchase Partition Magic (www.powerquest.com)...
Or, just use the secondary drive - blank it out and use it as a seperate data partition...