Just pop it in your PC and use Hinsdale's How To for MFS Tools 2.0 to install your Tivo image or backup. If you're upgrading to 3.1 using Superzap's upgrade or Tivolator 3.1 then you'll need to install 2.5Xtreme first. Download the 2.5Xtreme image from the tivostuff site and burn it to a CD. Set up you PC with the new drive installed as anything other than primary master, making sure that the jumpers are set accordingly. Configure the BIOS to make the CD-ROM the first boot device. Make sure you don't have more than one CD drive attached to your IDE bus.
Boot from the 2.5Xtreme CD and press Enter at the two prompts. Type in25xtreme from the prompt and answer all of the questions following the completion of the Xtreme installation. Shut down the PC when it's complete by doing a Ctrl+Alt+Del first. Place the drive back in your DTivo and let it boot, flash the EEPROM, reboot, and rebuild the database. You can shut it down when it gets to the "Acquiring data from the satellite" screen.
Install Superzap's 3.1 upgrade or Tivilator 3.1 by whatever method you choose. Since you don't have ftp or telnet set up in a barebones Xtreme installation, I'd recommend burning a CD with SZ's upgrade and doing the install in your PC. It takes only about 1 minute to install the files this way vs. about 30 minutes to transfer the files via serial connection using Zmodem protocol.
Reinstall the drive in your DTivo and let it complete the installation. Go through guided setup and set up your preferences. Set up all of your hacks using xPlusz, including noscramble, nophone, nosdd, addlocs/mvchannels, etc., and then reboot for them to take affect (this is only necessary for the hacks that are activated at bootup).
If you want to set up a static IP address then check through the appropriate upgrade thread to get info on setting it up for your particular upgrade. Install and run midupdate.tcl if you want the guide to populate more quickly with your locals using your specific market ID.
Please don't PM me or any other members looking for personal assistance. You'll do better by posting (after you've exhausted the search feature, of course) and taking advantage of the collective expertise of the membership instead of a single individual that may or may not be able to help you. Thank you and enjoy your stay at DDB!