I bought and used this software when I bought my last computer. It allowed me to migrate from the old ME machine to this XP machine.

http://www.detto.com/intellimover-transfer-files.php 

Transferred all my files, favorites, email settings etc over to the new machine. It will not transfer actual programs but should take care of stuff you want to move.

 Nice feature is you can use it later to transfer files between computers as you install the software on each machine. You simply open and run the program and you get a split screen showing both computers. You then simply drag and drop files from machine to machine.

Not really as big a deal now with the advent of external hard drives and flash drives but it was a huge time savings back then.

I'd just be certain you have a clean old system and a protected new system before you begin transferring files.