Hey there,
Thanks for all the hand-holding in this process. I am very happy to report that I've successfully, formatted, cloned, booted from the new HD in the enclosure and just now
completed swapping the old Fijitsu for the new Seagate Momentus 500. What a difference more disk space makes. When I first began this process I was very nervous about screwing up my computer and doing irreversible damage, but it's been a great learning experience--especially when it all went so smoothly.
For the record, I learned there are many roads one can take to get to this end result and, thanks to this forum, here is the route I chose:
1. I formatted the new HD first, using Disk Utility. So I took that extra step. But as SH says it's not necessary.
2. Used my OSX Installation CD to boot my computer and used Disk Utility to "Restore". This made sense to me to not use Disk Utility from the Applications program, although these instructions were offered many times. Also, although Carbon Copy Cloner is highly recommended here, I did read where some folks had problems with their new HD not being bootable after the cloning process was done, so again, it made sense to use what Apple has included--Disk Utility.
3. Checked that the "cloning" worked and was able to boot no problem from the new HD that was in the enclosure.
4. Took the new HD out of the enclosure, removed the original HD from the Macbook and replaced it with the new HD which is working just great.
Again many thanks to everyone for their tips, tricks and sound advice. I saved a bundle and a half in buying a new HD and some memory vs getting another Macbook at this point.
ClaraT