The issue is how large the boot partition is. Other than that, XP
supports partitions in the terrabyte range. (1000's of Gigabytes)
I _think_ you can make a token partition, (a gigabyte ?) for
boot.ini, ntldr, etc, and then install XP in the second partiton,
which will appear as C: when you log in. All the essential files to
boot XP will put in the little partiton by XP setup. I keep intending
to try this. SOmeone please correct me if I'm wrong.
Use NTFS. Depending on the way your application writes it's files NTFS
file system compression may help you, big time. I once was running an
allication that was receiving a GB/day of raw data and we needed to
keep a month's data online. This was when a 4GB server disk was a big
deal. As it happened , the data was all numeric ascii and compressed
20:1, so we used 50MB/day of real space. The applications that wrote
and read that data actually ran significantly faster since since we
were IO bound, not CPU bound, and a few computation cycles was cheaper
than the physical disk transfer.
You can put a second disk in the machine and put the swap file and the
tmp folders on it. to make the best of your C partition. A second
copy of XP could live there, too.
I believe Western Digital has a 400GB disk. It's a bit slow (5400rpm)
so putting swap on a second, fast, disk would be indicated it you do
any swapping, and maybe offload some application IO.
If you do RAID0 you can make a C drive that's the sum of the two disks
you're using. So I can see a C drive of almost 800GB, even if the
machine could only boot a 137GB partition.
Putting the system and a huge amount of data in the C drive is sort is
a PITA for backup and recovery from OS screwups (like applying SP2).
Consider installing a second, minimum, copy of XP for recovery if the
real XP gets screwed. Plan in 6GB for that. This could be installed
on a second spindle. The boot.ini file in the first partition on the
first disk has an entry for all the instances of XP you've installed
and points to the right device and folder when you pick one at boot
time.
When you boot an instance of XP, the partition that it lives in
becomes the C drive.