Now, I'm getting a little confused here and don't get me wrong ...

but if the install and your programs come to 12GB say, isn't the stuff cramping you up the files you are creating, accumulating and storing on the
same drive/partition as your operating system? ie you add them later.
Doing this is
never a good idea (IMHO and regardless of OS). If Windoze crashes for some reason and you get blue screened, you effectively need to lose all your data (unless you've been very contientious) when you reinstall. Which is why it is never a good idea. Your personal data should be stored and address books, bookmark folders and everything else you can possibly set to do it should be aimed somewhere away from that partition/drive.
Something else to remember is when a hard drive crashes, it is normally as trivial as one bad sector. Which means that generally, the information on the partitions on that drive apart from the one that has crashed is usually retrievable (another reason to partition drives - that age old debate).
If you really want to be safe, have a partition set for only your operating system and programs (and some people don't even store programs on the same drive as OS for reasons of speed - multimedia/gamers) and store your personal data, files, folders etc somewhere else. Much simpler and safer in the long run, trust me.

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