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No best answer has yet been selected by Whickerman. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.Not used Photoshop but a quick search on the web gives a few hints
http://www.sitepoint.com/forums/showthread.php?t=116898
I think if your PC has more than one hard disk it is best to have your temporary photoshop directory on a different hard disk to the one with Windows on it.
If you have only got one hard disk I guess you have no option.
Not sure if photoshop will still work OK though.