DriveImage will do this for you too - you need to ask yourself if this is a one time operation maybe though (Personally I use DriveImage to backup to external drive so was happy to purchase).... If it is a once off you might want to try and get by with the software that will PROBABLY come with a drive or be available from manufacturers site (I believe Maxtor to something, Maxblast or somesuch). You'd maybe want to check this out before your purchase. I think all of these will operate most happily between drives so long as both are (obviously) connected at once, so you can forget about CD or DVD.
Tittles way would sort of work, but could get kind of tedious depending on volume of data and would NOT sort out any programs that need Install etc, plus any that rely on where folder is to run might be out of whack - so I personally would recommend having something like Ghost/DriveImage/Acronis TrueImage in place (I have heard the latter is reputedly the best ongoing for backup)