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When partitioning a hard drive, there are advantages to creating two partitions instead of a single 'C:' partition. Load the OS and application software into the primary partition, and use the second partition solely for data storage & temporary workspace.
Some of the numerous benefits include:
Easy to backup a standard 'D:' drive for each user's data if necessary
No data loss should primary partion require formatting & OS require a re-install
Can create an image of the primary partition for ease of recovery (e.g. with 'Ghost' app) of OS / app failure
Should you run out of data storage space on your disk drive, this will not impact on your OS performance -- the default space allocated for OS paging is on a seperate partition to the data partition.