Problems,problems,problems-Need Help!

I have purchased a new hard drive for my computer (80 GB) but have so many things wrong with it at present think I better straighten up some things before attempting it. I'm running xp pro
1st problem) my games folder (windows games) has completely disappeared- I tried the fix for a
hidden games folder that is on this forum but there is not ghost copy of it there!

2nd problem) IE doesn't open- I am using firefox (and happy with it) but need IE to run PC Pitstop,
and a few other programs, the shortcut is still there but when I double click it the
little egg timer shows up for a few seconds and then stops-I've tried the add/delete
programs through the control
panel to set IE back as default browser but then I can't even get on the internet!
WHAT HAVE I DONE!!!!
3rd problem) Not a problem really, a question- I have sp1 installed and sp2 on disk. If I do a clean
install of windows on the new harddrive will I still have to re-do all the updates and
sp1 again? The new hard drive is a Western Digital with Data Lifeguard tools, says
I can transfer everything from the old hard drive to the new with it-anyone have
any experience with this program?

Thanks for any advice, I'm not completely computer illiterate, just enough to mess everything up! :)