No, you won't have to update the bios again. It is stored on a chip called the CMOS which is soldered onto the mobo.

And the best way would just be Start -> Run -> diskmgmt.msc and use that to format, assign drive letters, repartition...everything but your windows drive.

So I just hot plug it and do this?

No, never hot plug in hard drives...not unless it's a server that specifically handle it.