Lots of questions before you can get to your desired goal.
Since you are asking about jumpers, we have to make the assumption that we are dealing with IDE drives. This being the case, we have to know which of the two drives you are currently booting from, the 160GB or the 250GB?
Next, how many IDE controllers does your motherboard have? Two used to be the norm, but newer boards, favoring SATA drives, are coming with only one, and some with none at all.
If you have only one, and have a CD/RW or DVD drive, then you would have to remove that, as IDE supports only two devices per controller. An alternative would be to purchase a PCI IDE controller card to provide additional IDE controllers.
Basic IDE jumpering is either one device set to Master and the other Slave, or both devices set to Cable Select. If you are going to use Cable Select, then the Master drive will be the drive that is connected to the end of the IDE cable, furthest from the motherboard. The slave drive will be connected to the middle connector. When using Master/Slave jumpering, good practice says to place the drives the same way on the cable, though not strictly necessary
The IDE drive you are booting from is usually the primary controller Master. Your storage drive can be a Slave on the same cable, or set to Master or Slave on the secondary controller, if you have one, and depending on if another device is on that cable. Practice used to be to always make a hard drive Master and any optical drive, like a CD-ROM drive, slave as the CD-ROM drive would slow the hard drive transfer rates, but newer technology employs Independent Device Timings, so this practice has been relaxed.
If you tell us how many IDE controllers are in your system, and how things are currently attached (i.e. current hard drive is alone or has a CD or DVD drive attached), it'll be easier to answer your question.
The storage drive does not need an Operating System installed, but will need to be partitioned and formatted. These steps can be performed after installation.