Complete transfer of a laptop's contents to another (identical) laptop

Hi--
My apologies if this is a repeat question, but I have searched and not found another post with the same situation. I am currently using a borrowed Sony laptop operating on Windows XP, but need to return it to its owner. I have a new laptop that is the same exact model and Windows platform, but I want to transfer everything from the first laptop to the second--programs, everything (huge amounts, the whole C drive is full and half of the D).

My main question is this: what is the easiest, most cost effective way to do this and what equipment do I need?

My extra question is this: along the way, I seem to have picked up some sort of virus where I am constantly getting pop-ups from the internet (that aren't stopped by a pop-up blocker). Any (somewhat simple) way to figure out how I can avoid transferring this virus to the new computer?? I've run some virus scans, etc. but those have not seemed to help.

Thanks so much!
AQ

It is not a virus most likely, but some spyware. You need a spyware sanner to get rid of that. Spybot S&D, Ad-Aware and Hijackthis are some programs you want to look at.

The neatest way is to use some disk cloning software to transfer the hard drive contents over the network. Connect the computers with a crossover cable and use the freeware programs like g4u or udpcast to clone the hard drive.

I would not clone a drive with virus or trojuns
your just asking for more work later
if your (friend) has his install disc just reinstall on the other PC.
seagate has a free utility called disc wizard try it it will copy the whole drive without any problems

Please do read threads before you reply..
Disc Wizard will copy drives only inside one computer. It is useless for laptops.

boy thats weird my external shows up with seagate
as a drive letter
hooked on usb port
well smack me

Oh damn. My fault. He can use his external mini-IDE port!