How can the Documents and Settings folder be moved or set to another
drive?
I want it that way so that using a Recovery Tool like Acronis or Ghost
to restore or corrupted system does not destroy user settings and data.
Is there some registry hack to do it that way?
There's no good way to do this after Windows is installed. The time to
change it is when XP is first installed and then a special type of
installation needs to be done (unattended) to accomplish that goal. The
following MSKB article explains in more detail:
Cannot move or rename the Documents and Settings folder
http://support.microsoft.com/default.aspx?scid=kb;en-us;236621
Not sure I understand your imaging question. Both of those programs create
exact images of a partition. They do not backup specific folders and files.
Also, if the system is corrupted, a full system image of a partition
containing good copies of both Windows and Documents and Settings would be,
I think, desirable.
Separating Documents and Settings to a different partition could be viewed
as added complication (more chances for something to go wrong): two images
to manage and restore instead of one.