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And my parents use outlok express - are these files stored elsewhere (I remember last time, the address book was lost)
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Don't get a 1TB drive. They fail too often. Get two 500GB and put them in RAID 0.
For Win7, do a fresh install, it's worth it. If you can get a tiny SSD for the system it'd be even better.
I have been using my Western Digital 1TB hard drive for over a year and I use it rather intensly with video editing/games/as a DVR/STAYS ON 24/7.....Not One Failure...HOWEVER I MUST ADMIT THAT IT IS SLOWER THAN I DESIRE
Western Digital makes the best HDs....I have only had one of their HDs fail on me and it was about 9 years old when it happened