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You could setup a separate partition for your swap file if you wanted to depending on how much RAM is installed. ME copies the CAB files to the HD so you don't have to. I am a big fan of partitioning but I would probably only have one partition on this drive. If you get a larger drive definitely partition it. The only other reason to partition a drive this small would be to dual-boot OS's. Probably not big enough for that though.
I don't know if you have checked HD prices lately but you can get 13GB drives for about $70 & 45GB's for around $150.
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