If I was you I would set the new HD as master in the first place, and partion the device with only one partion of less than 2 GB.
Then I would install OS3.1, then OS3.9 and boingbags to get the FastFileSystem that can recognize disk above 4GB.
Partion the rest of the disk, and then connect the old HD as slave, and transfer all data.
All you need is your Workbench disk, and a CD install disk :-)
