Yes, Ghost is still available. Mind you we use the corporate version of Ghost and not the home version, they are slightly different from what I've heard, I really don't know much about the home version as I've never used it.
Anyways, the drive makes no difference to Ghost it can be any size or drive going to or from images. As long as the destination drive is large enough for the source image all is good to go. If the destination drive is larger and you have several partitions, you'll get the option to custom resize the new partitions. As for activation, we use XP Pro corporate which doesn't need activation so I've never run into that issue.
The one thing I like about Ghost is that if you get a computer that won't boot, for whatever reason, and if the HDD is still working you can Ghost it (image it) then open up that image file like a big zip file and pick out the end user's data. Or simply dump it on another same machine and have them back up and running in minutes. The only time I haven't been able to Ghost an HDD is when there was something physically wrong with it that was preventing it from accessing the disk. But I'm sure most of the other imaging products out there do the same thing.