True cloning can only be done using a RAID1 Mirror Array or a cloning machine. (But this requires that Both Hard Drives be the same size)...preferably the same model hard drive too. You can use a smaller drive, but the larger hard drive (as far as the RAID1 Mirror Array goes), will be truncated or reduced to the size of the smaller original hard drive.
I have not tried it, so I don't know what the results would be:
Since both XP and Vista have the capabilities of after installing an OS, to re-partition a hard drive w/out (in theory at least), destroying data or the OS or the NT Boot Loader, using the smaller say 40GB original hard drive...adding say a 250GB drive (that 250GB would be truncated or reduced to 40GB usable of course if used in the array), in a RAID1 Mirror Array, copying the contents of the smaller drive to the larger drive.
Then taking the larger new drive out of the array, using the in OS partitioning program to re-partition the drive to use the whole 250GB. I don't see why it wouldn't work. But, my theory is yet untested, by me at least since I'd just as soon do a fresh install since that drive really needs to have updated hardware drivers installed anyway.
Anyway, to answer your question....
You really should do a clean install on that new drive, whether from a full install CD/DVD depending on if you have XP or Vista, or the System Restore Disk Set that "may have come w/ your computer...(if not, go back to the manufacturer and get them as you are entitled to either free or low cost)", and get an external USB hard drive enclosure like the one at the link below and a laptop hard drive to 3.5" hard drive adapter like the one at the link below that, to mount your laptop drive in externally...Add all your programs and AV back in, update drivers and the OS, then use the settings and transfer wizard to transfer your data on that old smaller drive to the larger drive. You see, in my opinion, cloning software is really sort of a nightmare to the uninitiated user.
http://search.ebay.com/search/search.dll?from=R40&_trksid=m37&satitle=3.5%22+External+Hard+Drive+Enclosures&category0=
http://search.ebay.com/search/search.dll?sofocus=unknown&sbrftog=1&dfsp=1&from=R10&_trksid=m37&satitle=3.5%22+to+Laptop+Hard+Drive+Adapter&sacat=-1%26catref%3DC6&sargn=-1%26saslc%3D2&sadis=200&fpos=86401&sabfmts=1&saobfmts=insif&ftrt=1&ftrv=1&saprclo=&saprchi=&fsop=1%26fsoo%3D1&fgtp=
Good Luck.
PS: In the post right above mine, in #1....As soon as you install those 2 hard drives into another desktop computer, the hardware drivers will all be changed as required automatically via XP or Vista to the hardware drivers needed by the OS just to operate and boot to the required installed OS and interact properly w/ that desktop's installed hardware...(not really a big thing and have done it in the past the way you speak of), so it will not be a true cloning as done in a Hard Drive Copy machine like say Gateway or Dell does to prepare hard drives...same hardware drivers/same hardware/same hardware/drivers remember.
When that cloned drive goes back into the laptop, it will need to go back through almost an entire hardware drivers change again...Then some serious manual updating of hardware drivers anyway is really required if you want true performance from that hardware....I have done it and it does work...Had virus problems w/ laptops that I couldn't cure while the drive was in that laptop for reasons too long to go into here both hardware/software related. That is why I suggest a "clean install" above.