WinXP - putting user directories on secondary partition?

Folder Redirector can be used to relocate the special folders to a different path.

This utility can relocate the following shell folders:

Desktop, Favorites, My Documents, My Music, My Pictures, Send To, Shared Documents, Shared Music, Shared Pictures, Shared Video, Start Menu, Startup, Temporary Internet Files, Common Startup, Common Desktop.

Folder Redirector is freeware and portable (no installation required).

If you want move the entire user profile, here's a tutorial:

How to rename or move a User Profile folder?

Personally, I always use option 1: I move the location of the My Documents folder to d:\data.

I've actually never thought of doing it like option 2. I think it is possible though.

I wouldn't do it that way though, because when your system gets corrupted by a virus or anything, it's possible that the users registry hive or other user specific settings are also corrupted. Then when you would re-install windows, and apply the same trick (connect c:\documents and settings\ to the old settings on the d drive), windows would possibly be corrupted again.

I prefer starting totally clean again (i.e. only backup/restore the data, not the settings).