What operating system are you using? If its 2000 or higher, then you would want to use NTFS, however, transferring files using a disk image program that I describe and link to below while on an FAT32 system will not work.
If there is nothing on the drive formatted as an NTFS file, go ahead and right click it in My Computer, and go to "Format" and select FAT32.
If the drive has an operating system on it, you could just start up the old drive as a secondary drive, so you can still access the data on it.
http://selfimage.excelcia.org/This disk image program makes a direct copy of your disk on a drive, or copies it to a file.
I have never personally used it, so, what I am telling you is based off what little I have read:
When you install and run the program, check "Drive" for the Input device, and specify the drive C:. Make sure Processing is set to "None". On Output, select Drive as well, and the new drive.