Given the fact that Windows 8 would run better as a clean install on the SSD, if you want to install over Windows 7, then you could move the Windows 7 install, then upgrade, or upgrade and move that install... Unless the total partitioned space on the 1 TB drive was less than what the SSD could hold, you would need a third party utility to move the install.
I have not tried using the transfer wizard to move your Windows 7 settings to the new install, but I know it does not move entire program installs, those must be reinstalled.
You can install Windows 8 directly to the SSD (clean install), assuming this is an upgrade version of Windows 8, with the Windows 7 drive (sacrificial OS) connected. If this is an MBR install, you would have to make very sure which drive shows as primary in the bios. If they are both UEFI installs, it is a little more complicated.