I've done this twice, once on an iBook and once on a MacBook. I've used two means of moving data, each with good results.
FULL DISK BACKUP/RESTORE
I backed up the entire hard drive to an external unit in a USB enclosure. After installing the new drive, I partitioned it and restored form the USB drive. Aside from a few license keys I had to re-enter for a couple pieces of software (don't know why they didn't transfer) all was smooth. All my apps were there, all my data was there...a breeze.
FRESH INSTALL/HOME DIRECTORY RESTORE
I backed up just the home directory to an external drive. With the fresh hard drive installed, I did a clean OS X installation. After I created the my new user account, I restored the home directory and re-installed my applications.
I like this method better, as you start clean and don't copy extraneous files that my have been part of programs installed, then removed. You can modify the OS X installation to include only the apps you want, leaving the rest behind (I saved about 7 GB of disk space this way.)