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Seperate partiton for Outlook

I currently have (2) 320GB drives in a raid 1 array, (Partition C: for my OS (xp pro) and programs and Partition D: for data. My third and forth drive are set up in a raid 1 partitioned as above and used solely for back up storage. I use Acronis and Genie back up manager Pro.
I’m about six months into my new system and it has a few quirks (a lot of hang Apps and slow initial start of windows). The system seems fairly stable now but I have done a lot of add/remove programs over time. (Programs and utilities that didn’t like each other) I have a "Basic Image of Partition C" that I restore when things get sluggish, and it work well except for outlook. After I restore my C: partition with acronis I update and patch than go to my outlook backup which is done daily using Genie back up manger and bring the outlook image current. When I open outlook all my folders, email accounts are duplicated (1 old image folder and 1 new up to date folder from Genie restore) instead of just updating the original folder. (Any advice on this would be appreciated)
I'm about to upgrade to office 2007 and I was going do a XP clean install and build a new "Basic image" of all the programs I like and use now. To ease in future restores I was thinking of the following:
Partition C: OS / programs
Partition D: data
Partition E: Outlook
This way I can restore OS/programs when they get quirky and leave Data and outlook alone. Will I have to install all of office 2007 on E: or can I separate just outlook?  Are there cons to having things spread out on different partitions? Or is there a better solution all together?
Thanks in advance for all your Expert advice.


RWG

Intel Core 2 Duo E6700 2.67GHz / 4MB Cache / 1066MHz FSB / Dual-Core
OCZ EL Dual Channel 2048MB PC5400 DDR2 667MHz Gold Memory (2 x 1024MB)
Intel D975XBXLKR Intel Socket 775 ATX Motherboard / Audio / PCI Express / Gigabit LAN / S/PDIF / USB 2.0 & Firewire / Serial ATA / RAID
(4)  Seagate Barracuda 7200.10 ST3320620AS 320GB Serial ATA
ATI X1900 XTX 512MB
Sound Blaster X-FI
XP Pro
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and235100
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So if I leave outlook blank, user accounts ect.. Than restore from an outlook only image or Genie file backup. I would prefer to use the genie file back up for the outlook restore due to its smaller back up size, but I’m not sure it will restore all settings or just files. Great Idea Thanks!
On a side note I have acronis set up to do differential backups of my O/S weekly. They tend to always run about 13G even though I don't think I change that much weekly. (O/S drive is 22g used) When space gets low I delete all the backups between the image base and last differential. Is this smart or safe because it always makes me nervous?? My other thought was to just set up a full image backup to overwrite the old each time but I fear I might be left with a bad image if its schedule back up take place before I realize a problem. Do you have a better backup protocol I should use? You advice on this would be a great help.

Thanks again,
RWG
Unfortunately - I think that you are doing this the best thing you can for your system.

Perhaps you need to invest in a NAS box - and automate the backup procedure a bit - but other tjan that - using a raid system with retail software is not ideal...