sorry about the confusion. The old drive was set to 'cable select' so I left them both set to cable select. After the data swap using the Data Lifeguard Tools, I left the jumper on 'cable select' and removed the old drive and I got an error message that 'windows/system32/awgiha.dll could not be found' or something similar to that effect. I assumed that the data swap wouldn't make whatever proper changes needed to be made to make the new drive the boot drive. It didn't occur to me to go in and change the jumper to master since the old drive was running by itself in the 'cable select' setting.
When I say "I see them both". It is after I boot with both drives attached and booting off (I presume) the old C: drive. The 120G new drive is shown as drive H and appears to be identical to the old 40G drive.
If i create a Ghost image of the old drive, can I just restore it to the new drive and unplug the old drive and the new drive will magically know it's the boot drive and work correctly? Or, will I need to take other steps to advise Windows XP that the boot drive is now a different physical drive?