Just did some research and your current PC uses a SATA connection for the harddrive so yes you can as I have never seen a terabyte drive on IDE (not saying they are not out there) Now from the looks of things, your PC can only support 1 hardrrive, so when you install the new drive you will also need to install Windows on to it (or another compatible OS of your choice)

A word of advice, I have had many friends use TB drives as their primary drive and due to the size of them, it is best to partition that drive with OS and Programs (C; Drive) and additional partitions for all the data you wish to store. They say they are flakey at times and if you do not partition it and you need to format once again, you will lose everything that you saved on it, while a partitioned drive a reinstall you can just reinstall the OS into the C: partition and your data should be saved.