I am using.
Intel Core 2 Duo CPU E4600 2.4 GHz
Intel G33/G31 Express Chipset Family (Desktop)
Currently I am also using 160GB hard drives. Does my configuration support a 1TB hard drive? Any tips?
You can use more than a TB harddisk without worrying a bit
1TB + 250GB hard drives
Everything You Need to Know About 3TB Hard Drives
The drive size limitation can be a combination of the drive controller and the system Bios
Windows 7 received a patch, to allow 4KB native disks to be used.
You should have no trouble running a 1TB drive on that setup.
Those chipsets use ICH7 which supports SATA 3Gb/s drives, so any SATA 3Gb/s drive should work flawlessly regardless of size. Some I/O subsystems may limit modes in various manners, but on my ICH7 system, I have not run into any issues using drives up to 2TB each.