The 40G can't simply be copied to the new drive...
What method did you use ? ?
Travel to the manuf. site of the new HDD and DLoad their disk utilities...FREE.
Create a bootable CD following the info at the site.
Hook up the old drive as primary or master with the new one as secondary or slave.
Use the "Clone Drive" option of the utility with the old drive being set as the source and the new drive set as the target...
Let it run to completion...DO NOT interrupt it for any reason.
When finished remove the old drive and hook up only the new drive as primary or master.
Once it boots properly and everything checks out you can then re-introduce the old drive format it and use it for extra storage...