In previous versions of Windows, I was always disappointed about the inability to relocate the \users directory. I typically partition my drives so that Windows is installed on its own partition and then use a separate partition for installing applications and documents. Over time, however, the \users directory would eventually become bloated as a result of varying application installations and since I was installing the OS on a brand new 64Gb SDD this time, I wanted to keep the footprint as small as possible (don’t get me started on the gluttonous \Winsxs folder).
After spending some time searching for a way to move the \users folder, I tripped across this posting which detailed a way to do it without having to hack the registry to pieces. It sounded fairly straight forward and since I was doing a fresh installation of Windows 7, I wasn’t concerned about the outcome.
http://lifehacker.com/5467758/move-the-users-directory-in-windows-7
Needless to say, this method has worked just fine for me. Other than having to remember that the c:\users folder actually resides on the d:\ drive (even when it appears in Windows Explorer to live in c:\), I haven’t had any problems.