i think you can just format the 1tb to fat32, plug it in via usb, and then transfer using xexmenu's or fsd's file manager.
otherwise (what i did) was swap the hard drive, format it via NXE, and then copy all old hdd files via ftp to pc, then back via ftp to the new hdd (it took forever and wasn't very awesome...i couldn't get the new hdd to get recognized in programs on the pc but i think if you apply hdd compat patcher it will take care of that...)
edit: i don't know about using a transfer kit though sorry! it might work?
This post has been edited by sm32: Aug 31 2010, 06:18 PM