Actually, Seagate Disk Wizard is a customized version of Acronis True Image. What the instructions advise makes sense most times, but not in your situation. Here is my recommended sequence:
1. Leave your old IDE HDD installed as it is, and use it to boot from. When the new 1 TB SATA unit arrives, install it and connect to the first SATA port. Remember that there is NO such thing as Master and Slave settings for a SATA drive; do NOT try to set any jumpers on your new SATA unit.
2. Check your OS. If it is the ORIGINAL version of Win XP, you MUST update it before proceeding with a Service Package, because support for HDD's over 137 GB was only added in SP1. It is strongly recommended that any Win XP be updated to SP3. However, if your OS is Win VISTA or anything later, do NOT worry about this.
3. Another item to check based on your OS. If your OS is VISTA or later, ignore this item entirely and proceed to item 4. BUT if it is ANY version of Win XP, that OS cannot use a real SATA HDD to boot from unless you go through a driver install process that you are trying to avoid. However, there is an easy work-around for XP. Boot up and go immediately into BIOS Setup, where you configure the SATA ports. First, ensure that the SATA port(s) are Enabled if you have not been using them until now. Next, look close by for a line about the SATA Port Mode, with options like "IDE (or PATA) Emulation", Native SATA", "AHCI", or "RAID". Set this to "IDE (or PATA) Emulation" mode. This tells the BIOS to intervene and make the actual SATA unit behave like a simpler IDE unit that Win XP knows how to use without any special driver installed (you've already been using an IDE HDD). You lose a couple of small enhancements that real SATA drives offer, but it makes it all work easily. Lastly, look for the place where the Boot Priority Sequence is set. Set it to use your optical drive as first device, and your old IDE drive as second choice, but NOT the new SATA unit (yet). Now Save and Exit.
4. Disk Wizard can be run from the CD it comes on, but it is probably better to install it on your old C: drive and run it from there. Then start it up and make SURE you choose the old IDE HDD unit as the SOURCE, and the new 1 TB SATA unit as the DESTINATION. It will offer for your approval a group of settings before proceeding. I usually find at least one of these needs to be changed, so don't just hit "yes". What I like to change is the SIZE of the new DESTINATION Partition it will make. If your old HDD has only one Partition on it, typically the default is to make the new partition the same size as the old one. I bet most users want the new HDD to be all ONE BIG Partition taking up the whole new disk space. So you need to not approve the default and use menus to specify that new size. (It may be 930 GB, not 1,000 GB, because of disagreements about the definition of one "GB", but just make it the largest you can, if that is what you want.) The Partition being created should be a Primary Partition, and is should be bootable. For Formatting options, choose to have the NTFS File System used, and what you prefer: Quick Format (15 - 20 minutes) or Full Format (a few hours BUT includes a full test of the new HDD). When options are set the way you want, let it proceed. After Creating the Partition and Formatting it as specified, it will completely clone everything from old IDE to new SATA unit - takes several hours for this stage, too.
5. In item 4 above I mentioned changing the size of the new Partition to what you want. IF your old IDE HDD has MORE than one Partition on it now, the default choices will be different. In that case, default is what's called Proportional Partitioning - it offers to make Partitions on the Destination drive with sizes in proportion to those on the Source drive. For example, if your old HDD had three Partitions sized at 100GB, 150 GB, and 120 GB, it would suggest new ones at sizes of about 250 GB, 380 GB, and 300 GB. Those may not be the way you would like them, so you can set each the way you want, similar to item 4 above. Likely all of them should be Primary Partitions; however, not all need to be bootable, probably only the first one.
6. AFTER the clone process is complete you shut down. Disconnect power, open the case and disconnect the old IDE drive, both power and ribbon data cable. You can leave it inside if you like or remove it. Remember, it is a perfect backup of your system right up to this point. If there was another IDE unit sharing that ribbon cable, you'll have to make an adjustment. I assume the IDE drive was the port Master device, which you have just removed. So the remaining device will have to have its jumper changed to be the Master now. Also, you should change the cable connection and use the ribbon cable's END (Black) connector to plug into the (newly re-assigned) Master device. Now close up and reconnect power.
7. When you boot immediately go into BIOS Setup, and go to where the Boot Priority Sequence is set. Now you change it. IF your optical drive was on the IDE port and has recently become the Master there, you should be sure to re-specify that the optical unit is the first boot device. Set your new 1 TB SATA drive as the second device. Save and Exit, and your machine should boot up right away and look just like it always did, except that the C: drive will be MUCH larger than before. This step (re-assigning the boot drive) is what the confusing instructions were trying to avoid.
8. After you are completely satisfied that your system is running properly and you did preserve everything, you can decide what you will do with that old IDE unit.