Hi candycane:
As an aside, this will also work with OSx86 Laptops and Desktops.
I used Dell Inspiron 1300 and put the old drive in 2.5" Hard Drive Enclosure and the new drive in the laptop. After installing Mac OS X, I was prompted with Apple's Migration Assistant. I selected the profiles and files on the External Drive, and the Migration Assistant took care of everything.
--danyel