Transferring programs will work for some, such as games that aren't reliant on steam or a source like that. Games you install from a cd can easily be copied over to another hard drive and still function properly. Although be sure to get all of the files associated with that program if you plan to copy it over, otherwise you might run into problems. What do you mean by settings?
Also i've never attempted to transfer programs from xp to windows 8, and by transfer I think you mean simply copying and pasting them into your new hard drive or etc?