I am in the research phase of my first build and keep noticing about using a smaller SSD for OS and applications and a large HDD for storage to improve performance. How would I set up such a system? Any guidelines or links to guides are welcome. Thanks guys.

Edit to add: I will be doing a clean Windows 7 Ultimate install. And also, how would installing new applications occur, will it automatically ask me what HD to install to or will I set up some setting which will tell all applications to install to the SSD?
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  1. there's no big deal rather than money to get ssd ..

    install OS in one SSD , if you have other one install application on it..
    than partition you HDD as your need for data's..

    you can also try RAID 0 with 2 SSD (make sure they are RAID supported device before buying) & use it for OS & applications..

    also have a look at this
  2. Make sure that ONLY the SSD is connected when you install Windows. Windows creates a "Recovery Partition", and if it sees another drive available at installation time it'll put the recovery partition on that drive. The boot process starts by booting from the recovery partition, so if it's on the HDD and the HDD fails, you won't be able to boot.
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