First off, I have to give much thanks to all of you who have contributed.
I'm not too proficient with computers, but I'm no dunce by any means. My strong point is with car audio, so I was kind of caught off guard with the whole upgrade process since the majority is done with a computer.
I bought a 40GB Toshiba hard drive off eBay since Newegg only has the SATA drives, I believe. I bought the 2.5" to 3.5" IDE adapter off compusa.
I followed the instructions and everything was fairly straightforward. I did, however, run into a few problems when I connected my hard drive to my motherboard.
I wasn't aware that I had to initialize and format it in disk management first. After removing the security features, I started up windows and freaked out when my computer didn't list the drive. I saw that Windows found new hardware, but was confused when it didn't show up in My Computer. I chalked it up as to having a garbage computer, so I ordered an external case. It was $12 from newegg. You can get cheaper ones, but this one was pretty decent. When that arrived, I tried hooking it up to my USB port and still had the same problem. Windows found the mass-storage device, but didn't display it in My Computer. Anyway, after a little research, I found out how to initialize and format it. I thought I would run into problems because I formatted it as NTFS, but it didn't seem to make a difference.
I know most of you already know this, but I assume that there are some that don't (like me). For those of you having the same problem here's what to do:
go to Start --> Run --> and type in "compmgmt.msc" (be sure to exclude the quotation marks)
Under "Storage" go to "Disk Management"
Scroll down and find the new drive. Right click and select "Initialize" then right click and "Format"
BE CAREFUL WHEN DOING THIS BECAUSE YOU MAY ACCIDENTALLY FORMAT THE WRONG DRIVE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
After it was done formatting, I used Acronis True Image to restore the .tib file onto the new HDD. It was straightforward and fairly simple. It took a little over 15 minutes I believe. If your replacement HDD is more than 30GB, you can resize the music partition. I used Acronis Disk Director to resize the 9.08GB partition. Once again, very straightforward.
I removed the hard drive from the Z1, but had problems unscrewing the plate like many others. I tried a jewelry screwdriver, but there wasn't enough torque. I used a Cobalt 6-in-1 screwdriver and used the smallest Phillips head. Also, locating a T8 screwdriver was a pain. I just wanted the T8 head without having to buy the whole set.
I swapped the hard drives and powered up the car. It updated without a problem.
The unit is a lot quicker when using the keyboard for a POI search. I haven't had much time to fool with it, but it seems like it's working great.
Thanks everyone.