You cna relocate "My Documents" to the D Drive.
Just Right-click My Documents | Properties and then relocate it and browse to a folder on your D Drive.
It's better if you create the folder there first.
This is what I've been doing for quite a while as if you should reformat your C Drive to reinstall XP My Documents will not be affected.
But it doesn't mean you don't have to back up your files as the HDD can fail any time.
I have moved all my data, mail and favourites to my d drive, the only thing left is documents and settings. I would like to be able to move it to my d drive so when I re-image the c drive I dont lose important infomation. I supose I could copy it before I re-image but would be simplier is I could move the whole folder to the d drive.