Windows – Move iTunes library from Windows XP computer to Windows 7 computer

Yes, simply coping your entirely iTunes folder to an other computer will do the trick. This assumes all of your media is consolidated within the iTunes Media and iTunes Music folders. iTunes will assist in copying music to the folder and organizing a library if you would like to ensure all the media is portable when it comes time to transfer.

Do not forget to reauthorize the old computer if you are not going to use it regularly in case it crashes and one of your 5 slots is taken up. You can reset things after a lost computer, but it is somewhat time restricted to prevent abuse of that feature.

You never said whether your hard drive is dead. If it's not, pull it out and use it as an external drive (with the help of a SATA-Firewire adapter). Use Migration Assistant.app to copy over your music, or just copy your iTunes folder (e.g., "~/Music/iTunes Media/").

Then, the next time open up iTunes, hold down alt as you tell it to open. In the following dialog box, select the new location of your iTunes Media folder.

My apologies if your hard drive is legitimately dead. I don't yet have privileges to comment on a question, which would have been a more appropriate vector for asking you to clarify the state of your hard drive.