Hi all..
Well it seems the answer to my original question is ---
YES!!!!
I swapped drives again and installed WinXP onto the new drive after first unplugging the other hard drives to ensure I loaded XP to the correct drive..
I turned off my PC, reconnected all the drives, and rebooted. I then checked to make sure that both my backup file and the ghost I had done were showing on the other drives, that was awkward as XP had renamed all the drives, but by checking the sizes I managed it ok..
I then did a backup-restore from my saved file to the new C drive, it confirmed transfer was completed ok. and indeed my desktop icons had returned, so I rebooted..
But.. It rebooted into the screen that tells you, you shut down incorrectly, and gives you choices as to how you wish to continue, I chose to reboot normally, but it booted back to the same screen?? I then chose to boot into "safe mode" , it rebooted into the same screen again!

In fact no matter what I chose to do, it would not go beyond that screen!!
I then tried booting from the Ghost floppy, found the ghost file I saved yesterday, and told it to copy back to the (new) C drive, and off it went. On completion I chose the quit option, and on reboot I went into the bios and reset them to boot (1) Hard drive Boot (2) CD .. Boot (3) removable (floppy?) then rebooted once more..
After a very long boot up time I got my normal desktop? complete with picture!! woo hoo!!

-- It then found the "new drive", installed it, and asked to reboot.. I ok'd that and presto!! I now seem to be running as normal on a new C Drive!!!!
Everything seems to be working exactly as before, in fact I am running on my new drive as I write this on our forum, I have not even had to redo my DSL internet connections!.. Brilliant!!!
My sincere thanks to all of you who gave me help and advice during what has been quite a long saga!
EDIT:- I have had a few glitches, minor stuff like Win med player was greyed out, I just reinstalled that, my "open with" menu was almost empty, so I added stuff to it again.. ETC. So nothing major so far..

And -- My C drive is now running at 40 whatever? as opposed to its old speed of 25...
.
James. (Nr M67 East of Manchester).
Dark Blue ZX 1.9D Auto 1994 'L' 5 dr (modified) Aura. 98K miles used daily. Ave mpg 40
Wedgewood Blue 75 CTD auto Connoissaur. 2002. 144k. used daily. ave mpg 40 ish.