The My Documents folder is the default location for your data files. If disk space is at a premium, you might choose to relocate this folder. For instance, if you add a second hard drive to your system, you might decide to use it exclusively for document storage. Here’s how to relocate all your data files to the new drive.
In Windows XP, click the Start button and then right-click the shortcut for My Documents. Click Properties. On the Target tab, click Move and choose the new location for the folder. (If necessary, you can create a new folder using the Browse dialog box.)
When you click OK, your document files are moved to the new location. Clicking the My Documents icon on the Start menu or in a common dialog box now takes you to this folder instead of the original location.
One caution: Be aware that some programs (notably Microsoft Outlook and Outlook Express) continue to store data in the hidden Application Data folders within your user profile. When you move your My Documents folder, these files remain in their original location. Make sure your backup strategy includes all your data files, not just those in the My Documents folder.
Ed Bott 
Also you can use it to have your My Documents (or any other document folder) on another machine. Great if there’s a couple of you using laptops and have another “server” computer in a peer-to-peer network. Means that you only have to back up the one machine. You can use Off-line folders as well which means you have your documents with you wherever you take your laptop. I’ve set it up for a number of people and they love it. My SBS clients always get it.
Thanks for the great blog.
Ian Watkins
I hear that Microsoft is dropping the redundant “My” prefix to its folders in Longhorn. Good! I prefer those folders to be prefixed by z_ so they’ll land at the bottom of the folder tree.
I want to create a 10gig ‘C’ boot drive with remaining space for virtual memory. So I would like to, by default, relocate the “Program Files” folder to another partition. I’ve already read your moving profiles tip and understand it well. Toss me a bone please.
Thanks Bro.
This takes care of moving your My Documents folder, however, if you have a computer in a network situation where multiple users can log onto your machine, the My Documents folder that you move to the new drive (local in my case) can still be accessed by any user who logs on. Do you have a suggestion to maintian the user privacy of the My Documents folder even after relocation?
Thanks,
After moving the My Documents folder I can not fax any more, because the programm windows fax and scan can not access the new My documents location.. Printing is no problem.. how can this be solved?
Bernhard, I’ve moved my Documents folder to the E: drive, and I have no trouble sending a fax using Windows Fax and Scan.
Where are you experiencing issues?
I think many people have a problem with starting Windows Fax and Scan after moving their documents folder. Is there a solution?
I cannot run Windows Fax and Scan after moving Documents to E: drive. Is there a fix?
Hmmm, Windows Fax and Scan is working fine here with Documents relocated to E:. I’ll see if I can find any other reports of problems.