I got the new drive and placed it in a SATA-USB case and formatted it correctly using Disk Utility (with GUID partition table). Then I used Carbon Copy Cloner (CCC) to transfer everything from the old drive to the new drive.
I tested the new drive by trying to restart with it as the boot disk, (in the USB case). It started booting, but then suddenly restart half way through booting.
I had an appointment with an Apple retailer/service centre to do the upgrade, since I had read that the installation was quite tricky. So I went ahead and got the drive installed - placing the old drive in the SATA-USB case.
So, still no full booting... crash restart half way through. I tried again using single user mode (CMD+S during initial boot) and noticed an error message about `devfs`.
I booted of the old drive and noticed that the new drive was missing '/dev/'. I created this, making sure to copy the permissions and user:owner as on the old drive:
sudo mkdir /Volumes/NewDrive/dev
sudo chmod 666 /Volumes/NewDrive/dev
sudo chown root:wheel /Volumes/NewDrive/devI also noticed that '/.vol' was missing, so I repeated the process for that directory.
After that, the system boots correctly off the internal drive. There's still something funky going on just as the Finder loads, but I haven't figured that out yet.
And using CCC is certainly a lot faster than reinstalling from scratch (including all applications!).
Good luck to all,
Matt