When Windows 95 introduced the registry and shared DLLs. You can't (for most programs) move a drive over and start using the programs on said drive. Your plan at first sounds ok until you try it with Windows. I am not commenting on your hard disk configuration, but share why and when this sort of setup began to fail.
Best of luck,
I have installed my software with two accounts present - both System Administrator accounts. I changed one to a Limited Account - it now no longer can access some software.
My system - 120GB EIDE Drive partitioned into three drives. I do NOT put my applications on C: as it was an insurance policy against windows crashes that all data would be eslewhere. I find I can re-install the OS and get back to work quickly without "re-installing" the apps as theu are available out on the D: drive. It shortens the time to being able to restart my work when I have a crash. (Nuff said on this topic)
End result is the Limted User now doesn't have rights to everything needed to run the apps that were fine when it was a System Admin account. Similarly, new LImited USer accounts can't run my generic office-type apps.
Can apps and files be readily switched to being accessible by Limited Users or is that hard wired into the system and I need to re-install everything with both System Admin and Limited USer accounts present in order to receive full benefit of the security and reliability that is impliedly built into XP.
Thank you for constructive comments in advance. Please do no comment on my hard drive config - I am not going to change any time soon.