Can you plug one computer to the other with a USB and click and drag info from one to the other.
No, but you CAN do a similar thing.
Bare with me here, it's much easier than it seems...
You need an RJ45 ethernet cable (they're nice and cheap, you probably already have one) and to link your new and old computers via there network card (it could very well be on your motherboard already as most are these days) Then go into your network connections and right click on your connection (it'll probably be "Local Area Connection") then select properties.
Then, you want to click install and then click protocol. You'll need the NETBUEI protocol installing. Once you've done that, right click on My Computer select properties and then find the tab with your network name on it (which will most probably be WORKGROUP) MAKE SURE it's the same on both machines. Reboot both machines and then go into "Network Places" and then click "View Workgroup Computers" You should be able to see both your machines, so go for it! transfer whatever you want.
OR you could just use the files and settings wizard in XP which is much easier, but whatever you do, don't put your old hard drive in your new computer unless you know it's CLEAN (i.e. free from ever having viruses, etc.) otherwise you run the risk of spreading any potential problems from your old machine to the new one and you don't need that.
*geek mode off*