Hmm.
I too have a "D" drive for "My Documents" as was. I didn't get the virtualisation happen though. Did you move the "path" for documents, pictures, downloads etc by going start, right click on documents, left click on location, change the location to the real place you have "documents".
I went through this, so I ended up with a D: drive with [username] and then a series of folders contacts, documents etc each of which I'd remapped.
This way the [username] option in the start menu looks at the C: location, and then on to the D: location, popping you to the right place
No virtualisation, but two curious anomalies:
1) I cannot get rid of the "contacts" folder in the C: drive, I delete it, it comes back
2) I cannot "hide" users' files from one another. So, on my D: drive the "Lee" folder can be accessed freely by even a guest account. This is an irritation, as it somewhat defeats the object of users being able to keep their documents away from other non-admin users. I have a lot of guests come to stay here, all of whom use this PC for checking hotmail and things, via a separate limited account. Under XP that was fine, under Vista they can see my documents, and root around in my bank statements I have on excel, my e-mail, etc. Not that they would, but it would be good if somehow access control could be better.
Not sure if that helps or not, sorry.
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