I've setup my partitions in the same way for over 10 years now, ultimate speed..
This is on 2 x Western Digital 10,000 rpm Raptor drives
Hard drive 1:
C: Windows (20gb)
D: Games - also save email attachments and all browser downloads on here
E: Apps - I custom install every application here and keep my docs/data here as well
Hard drive 2:
F: BACKUP (1 huge partition)
I use Acronis Trueimage every night to take an incremental image of my C/D/E partitions onto the F drive, only takes < 2 minutes
The Windows paging file is on this 2nd drive fixed at min 2gb max 2gb so it is NEVER dynamically resizing itself and being on a separate drive, while the operating system is busy with it's own windows files, if it needs to use the paging file they do not impact on each other.
InternetExplorer and Firefox browser cache files are forced onto the F: 2nd drive to not clutter up my 1st drive.
Windows temp files are all forced to F:\WinTemp instead of the default c:\windows\temp or c:\user\....
In other words, all the temporary/cache crap stays out the way of the operating system C drive.
If/when I install new drivers and anything goes wrong I normally only need to restore the C:Windows partition - so I can restore a completely wrecked machine in < 5 minutes every time.
Splitting everything up sensibly across drives and partitions makes the maintenance of it so much easier when you have problems. My WindowsXP machine was NEVER clean installed since it was released, I think I ran the same install for 5 years solid and all my friends with CLEAN installs still wondered how my system was so much faster than theirs.
I use this strategy on all PCs I work with, people never believe me when I tell them I can restore with Acronis in under 5 minutes, it's easy when you only have the OS on the small C: partition.