It is a dead simple task. The tool you need is a Live CD from gparted or Parted Magic downloadable from any of the official site by Google "Parted Magic" etc.
Steps
(1) Download the software and burn it into a bootable CD
(2) Buy the bigger 2.5" hard disk. put it into the 2.5" hdd enclosure and hook it up as a USB hard disk. No need to format. Use it as the raw disk.
(3) Boot up the Live CD and click terminal. Check the disk names by terminal command
The new disk should be sda without any partition inside and its size should match the capacity you purchase. The disk will be named sdb only if your existing 4-partition disk is a Sata., otherwise the source should be called hda and the new target sda. Adjust the name according to what "fdisk -l" reveals. If in doubt post here the output of "fdisk -l".
(4) Assuming the new disk is sda and the source disk is hda then the entire 4-partition can be cloned by just one line of terminal command
Code:
dd if=/dev/hda of=/dev/sda bs=32768
Since the target is a USB device the cloning rate should drop to about 7 to 11 Mb/s. The above will work as long as the target disk is bigger in capacity.
(5) When dd complete it will report to you the No. of records each transferring 32768 bytes. The total of bytes should match approximately the new bigger disk. Once satisfied it is completed power down the PC.
(6) Remove the existing disk as a backup for safe keeping. Put the new disk into it place. Reboot and satisfy with yourself that everything work perfectly before attempting to resize any of the partitions.
(7) XP will know the hard disk has been changed. This is allowed but to amend the register it will demand an immediate reboot. After the reboot you have an activated XP legally transferred into a new disk. XP has an internal record of every hardware and so an activated XP cannot be used on other machine. The hardware change for a hard disk is within the threshold set in the factory. MS allows this because a hard disk can fail in service.
(8) Satisfy everything work perfectly and then boot up Parted Magic and use it to resize the partitions. I recommend to resize and test one partition at a time before moving onto the next partition. Also have the XP defragged first before resizing it. Parted Magic is a graphic resizer with which you just drag the partition boundary to the size you want and press enter.
Knoppix doesn't resize as reliably as the current version of gparted and Parted Magic so don't use it!