I run a dual hard drive setup. C: is for windows and core programs; D: gets everything else. Amazing setup which I first used by semi accident; I needed a bigger HD because DVD based games had made install sizes go through the roof overnight but did not want to lose everything in a reformat. Way back then we had a local PC shop and they were damned good. They suggested a secondary HD, I reluctantly agreed thinking it would be weird, and within a few days of use I loved it. So many advantages! Nowadays it is a flat out requirement; I will not own a PC with only one HD.
Steam and my games sat on D: untouched during this entire process. All I did was run steam.exe from that folder and it worked for a bit to repair itself; it's now fully functional and I didn't have to reinstall any games. That's a useful feature.
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