Only your face and catalog transfers, and maybe hair. Items and bells don't transfer.
I heard that you lose everything in your bag when you do, so store everything in your house.
actually when i first got the game i started fresh and then i realized one could transfer..i deleted my town and started a new one with my DS character...smooth move too cuz i got most of the standard furniture series completed...i say its kinda better to do DS transfer..and yeah yer hair comes with you...bells dont..sadness