Cloning/Replacing Internal Hard Drive help!

hey everybody, thanks for your time!

i need to clone and replace my internal hard drive. it's 150 GB and almost full, so I'm replacing it with a Seagate 500 GB so I can upgrade from Os x 10.4 to Snow Leopard, and generally have TONS more space

I'm attempting to do the cloning in Disk Utility- I've got the new internal hard drive connected via USB right now, however when i select it as the destination, the 'Restore' option remains greyed out...

I imagine I need to format my hard drive, however I impulsively clicked 'New Image' and it began creating a disk image of the new hard drive...

Will this accomplish the same task formatting it would? Am i on the right track with this?

I plan to clone the information, then switch the hard drives. That should all work, right?

Thanks for the help guys!!!!

peete


(ps- i'm running a 2007 macbook pro, os x 10.4.11, 2.33 Ghz intel core 2 duo, 2 GB 667 MHz DDR2 SDRAM)