Ok, after some digging around I found a solution that more-or-less satisfies what I'm trying to do. The following three links provided the info step-by-step for the actions to perform:
- http://serverfault.com/questions/8187/whats-the-best-way-to-move-c-users-to-d-users-under-vista-w7/8211#8211https://serverfault.com/questions/8187/whats-the-best-way-to-move-c-users-to-d-users-under-vista-w7/8211#8211
- http://www.starkeith.net/coredump/2009/05/18/how-to-move-your-windows-user-profile-to-another-drive/
- http://benjol.blogspot.com/2009/05/moving-users-folder-in-vista.html
I haven't fully tested all the aspects like trying windows update but it seems to working well for me so far.