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using a large RAID 5 drive as system partition in Win 2003?

I am building out a server for our software tech support group.  They will be running VM Server on this to host many VM images.  It's an older Dell 6600, quad proc, 24GB machine.  They've requested that all drives attached to the RAID controller be put into a RAiD 5 array, and formatted as one large drive C: (7 disks, comes out to 850+ GB).  I personally don't like creating servers like this- but they want to maximize on their disk space.  Is there a compelling reason to partition a system drive (30-40GB) for Drive C: and then leave the rest for data/programs, especially since it's one large RAID 5 array and everythings hitting the same spindles?
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brgray1

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All valid reasons (and I'm trying to get them to let me install two drives in the spare 5-1/4" bays, configure for RAID 1 for the system drive- they'll get the best performance keeping the system and paging file on different spindles than all of the VM images)- I just can't any technical reasons for why most of us system engineers want to set up the system in a different partition.  The way Windows manages system space is different than the way it manages other volumes is different, but for the life of me, I can't remember how.  Preventing the system partitiion from filling up is the biggest one for me, I've been bit by that one too many times.  And certainly, having a huge RAID 5 array would help prevent that (and using a disk quota on the volume).  I jsut keep thinking there must be a best practice and/or white paper talking about system drive partitioning on a single RAID 5 array (other than my stance- "just say no")  LOL
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I need to clarify- I don't like system partitions to be the entire volume of one large RAID 5 array.  Just do there's no confusion.
I second that... :^ )
I don't have a 'best practice' that states that, but every admin I know would agree as well.
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Well, the tech support department is insisting on a single RAID 5 volume, so I'm giving it to them along with my disclaimer (you wanted it, I didn;t approve, so you get to support it yourself), clising the issue and washing my hands of it.  Thanks for your input!  I'm increasing the point value and divying it up between the three of you.
Thanx - happy to help! :^ )