Hi and welcome to the forum.
The options open to you are,
Replace one of your existing drives with the new one.
Or if you are not running two harddrives then you could connect your new drive to that IDE channel as the slave drive.
Nero is basically good enough to copy files onto your CD or DVD. It isn't good enough to backup films to DVD or to copy protected CD to other CD's.
Luckly though we have an entire forum dedicated to these issues. So look around and hopefully you will find out what you need to know.
Hope this helps.