Disconnect the old drive. I don't know how you have this configured, but let's assume it is IDE master slave. The old drive needs to be the slave. The new drive needs to be master. Each drive has a jumper cap that you have to move around to set the drive for its position on the cable. Once you get the jumpers set correctly, attach the old drive to the middle IDE connector on the cable, and the new master drive to the end connector on the cable. Now, the 300 GB controller is controlling both drives. That is what you are telling the computer when you make one drive master and the other slave; use master's controller for both drives. When you get done with that, go get dd_rescue
http://www.garloff.de/kurt/linux/ddrescue/
Transfer all the data off the old drive with
dd_rescue if=/dev/sdb of=/home/sam/olddrive.img
After it gets done, mount the image
mkdir /mnt/olddrive
mount -o loop /home/sam/olddrive.img /mnt/olddrive ext3 defaults 0 0
cd /mnt/olddrive
there's all the files.
I recommend this method because if there is damage to the disk at least you will have some files. See how it goes.