Physical you can swap the hard drives... but there is a VERY high chance it will blue screen at startup and get stuck in a boot loop. Windows configures itself to your hardware at first boot and doesn't take kindly to major hardware changes.
However, if it's absolutely essential to copy everything over then it can be achieved. I just wouldn't recommend it.
#1 Easy Option
Buy a copy of Acronis True Image and backup your old laptop. Create bootable media and restore this backup to the new laptop using the 'Universal Restore' feature.
*Other backup software has the same capability, I'm just more familiar with Acronis
#2 Free Option
Sysprep the old laptop using the generalize option and shutdown. Once it powers off, remove the drive and put into the new laptop. Windows should re-configure itself to the new hardware.
These instructions are very basic. Do some research on sysprep before proceeding
Important Note
If your old laptop came with Windows 7 pre-installed - the licence is valid for that laptop only.
Even if you managed to successfully swap the hard drive you will most likely find yourself with a "Windows is not Genuine Error" which can only be solved by entering a valid key (ie. buy a copy).