I'm sorry to read that you paid extra for transfer software - Windows has it already built in.
I guess the new machine has Windows installed, so you don't want to alter that part of the software setup.
You will also install your main applications yourself in the proper way - so all that's left is the so-called "live" data, mainly settings and internet pointers.
The best way is to use a simple cable (about $20 in Oz) and the Windows Wizard. Rather than describe it in full, have a read of
http://www.microsoft.com/windowsxp/using/setup/expert/crawford_november12.mspxSome of the terminology is a bit arcane, but once you learn the trick, you will find it a useful addition to your knowledge.
Paul
Australia