Your best bet is to recover the image onto the existing drive, and then use a drive copy and partition expansion utility to copy everything over to the new drive after installation.
If you want to keep the current drive you can copy it to the new drive (expanding the primary partition as needed) and try a recovery. It should work just fine, but Dell messes with the boot sector, and it may not transfer correctly (or it may have information tied to the size of the drive).
If it doesn't work at first, read about Dell's restore utility here:
http://www.goodells.net/dellrestore/fixes.htm
You should find information and utilities that modify the boot sector as needed to give you the ability to run the recovery after doing a drive copy.
-Adam