hard drive busted-how to use time machine

How to gather time machine data and redirect to new hard drive that will be the replacement for my dead hard drive. I did just purchase a 750gig seagate with external enclosure. Question is,1. do i have to format the disk and 2. do i have to install a new operating system onto the new hd or just copy and paste or something else when i copy from time bandit save..
thanks for any help.
romeege
macbook 2 gig

Put in new hard drive

Boot up from your Snow Leopard disk or Mac OSX restore disk

Format the drive to Mac OS Extended (Journaled)

Install OSX on the new drive

When it first boots up OSX will ask you want you want to do next, one of the options will be to restore your mac from a Time Machine back-up

If your TM disk is connected up you are good to go and everything is restored

oh, nice, thanks a lot.