First - Congratulations.
It appears from your post that you have good experience with Windows before, therefore I am going to suggest to you that you make a partition large enough to hold what you think you will use in terms of space for all your Documents, Pictures, Music, Videos and Games.
I don't know how you will use your System, but evey program I use and the OS itself only takes about 40 Gigabytes. But regardless, I split my drive in half.
Remember that base on my recomendation - all your personal files will be stored on a different partition then C.
You should then move all your folders to that new location (partition). The way to move the folders is as follows, once the new partition has been created:
Open Windows Explorer. Windows 7 displays your folders under what is now called Libraries, you can't move the Name Library, but instead Expand the C drive, under Users, Expand your name, each folder listed there can be move to a different partition.
Windows already knows that those folders are part of your profile, that is why, there is no need to actually move the folder with your name, but rather the folders below your name.
Contacts, Documents, Favorites (This are Favorites of any Web Sites you visit and Save as your Favorites and quickly access through IE 8 or 9) and so on.
And yes, if your system did not come with IE 9, Update, it's fast and takes advantage of your hardware.
DO NOT MOVE THE FOLDER NAME - DESKTOP, While you have Shortcuts to programs there for your profile, if you move it Windows 7 could and I say could hang on re-start or boot, because it can't find it. There is a Fixit for this problem but I personally prefer to re-create shortcuts if needed - rather then having the system hang.
Fixit, is part of Microsoft's Website that helps you if you have a particular problem, where they have created an Automatic Fixit for particular problems. I keep a shortcut to Fixit, just to read what other Microsofts Problems are being Reported.
Here is the link, it may come in handy for you some day - http://support.microsoft.com/fixit/
Continuing on - Right click on, for example - Documents - Select the Location Tab - Leave the name as is - Go to the begining and change the drive letter C to the corresponding letter of your new partition.
You can even Label that Partition what ever you like so that is easy identifyable by Right Clicking on it and chose - Rename.
An easy way to do this after you click on the location Tab, the path is already highlighted, instead of using the arrow keys to go left, just press the Home Key on your Keyboard, Capitalize the new Drive letter only - and then click on Move.
Windows will prompt you twice if you already have items on the folders. 1 will be if you want to move the folder to the new location, 2 will be a recommendation to move all your files as well to the new location to avoid duplications.
You should answer yes to both prompts if that is what you get.
You would be very happy in case that something fails with the OS, as when you re-install it, all your data will still be available on the other partition of the same drive.
Of course, since the data is located on the same drive and I never encounter a problem of recovering it from there, it goes without saying that you should back up your Data often to an external drive.
When you move the folders to a new individual partition, and you open that partition, you will see the Path:
Users\Your Name\List of Folders - Therefore, when you ready to back up to an External Drive, you just click Users and Drag it to External Drive and everything you save under Users will be copy. It's is a simple and convenient way to back up your data, instead of using third party application, then again Windows 7 has a back up utility as well but with the simple way I describe above, I have to be honest, I haven't use it.
I will also recommend you make use of Windows 7 CREATE AN IMAGE. This is accomplish by going to Control Panel, and under - System and Security, select Back Up Your Computer. On the Top of the window that opens - there are 2 choices - 1 Create a System Image, and 2 Create a Repair Disk.
Create a System Image is a Life Saver, believe me, once you set up your system the way you like it and everything is working fine, you create that Image preferably to an External Drive, If you get malware or software that you intall creates a problem, all you have to do is Re-Start the PC, press and hold F8 until the Menu Appears, plug in your External Drive and Select - Repair my Computer. You go through 2 prompst, 1 is the Language and the other the original name you gave to the pc. This brings you to the Repair Utilities, click on - Repair my computer from an Image, and then just follow the easy prompts.
This Restores your C drive completely. And if you had already move your folders as mentioned above, this is already part of the Image, and when the system Re-Starts, the pointers for those folders will remain and all your files will be listed, even though you just Re-Image your C Drive.
I keep 2 Images, 1 The way your system was at First Login, and a Second one, with what I called Optimized due to the changes I make to Optimized Windows the best I can. if my Optimized fails in some way, I can always, and quickly bring back my Original Install or Clean Install of Windows 7.
The - Create a repair Disk option, is there in case you can't use the F8 key on re-start, but i have never, since Windows 7 came to market, have any problems accessing the Repair Utility using F8.
The Repair Disk Option, is basically the same tools created on a CD or DVD, that you would access through the F8 Menu.
Have fun, because the way you describe it, that system is loaded.