I believe Windows 7 can be installed on a secondary HDD (more info
here). In this case there wouldn't be any problem in plugging the 500 GB as a secondary (slave) drive.
I'm not familiar with KaOS, but I think
this might help you get Grub2 to boot Windows 7.
edit: Forgot to tell you to unplug the 1 TB HDD before installing Windows 7 to avoid Grub being overwritten by Windows. (This can be solved afterwards, but you'd need to boot from a Live system.
In addition, you will probably need to run some command to update the Grub configuration to include Windows 7. Not sure about KaOS, but on openSuSE it's necessary to run
update-bootloader --refresh in order to include other OSs in the Grub menu.