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You can move Documents and Settings, but it requires a registry edit. But you don't really need to, moving just My Documents is easier anyway, and that's where most of your data will go.
I've experimented with having the same as Answerth, Windows and important programs on primary partition (Windows, Office, AntiVirus, Drivers etc), other programs and data on second partition. It doesn't work too well though - if you have to format the C drive, you'll find that most of the programs installed on the other partition will break, and will have to be reinstalled anyway. It's best to keep a second partition solely for unrelated user files, and install everything alongside Windows.
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