Depends on how bad of shape that HD is in. Since you have a maxtor - go to maxtor.com (thats an assumption on the website)...and get a program called MaxBlast - it will make a bootdisk that will alow you to copy everything from your current HD to a new one. It may also alow you to fix problems on it (once again depending on how bad it is). You should be able to get files off your HD and put them on a new one with this program.
I use BootIt (download.com has shareware) and that will alow you to do the same things. I prefer it, but there is something about using your manufaturers software with their hardware - its usually the best idea.
I dont know what you mean by settings, but if the program says its okay for your HDs to do a full replications - you should be able to save everything. You should reinstall the OS over that though to make sure everything is nice and smoothe.
PS. copy *.* wont include directories and their contents. Right now I am drawing a blank on what the copy all comand is, but if you cant do a HD replication with the above software...let me know and I'll get it for ya. Doing that though probably wont alow your OS to work and you WILL lose setings.