I also vote to use the SSD if you can live within the 120 gig space(it is recommended to leave some free space).
SRT is a good option if you NEED that extra space. I use was using it on Win7 and it worked well for my use(but i took that SSD to play with win8).
If you use SRT, the bios has to be set to RAID mode, no arrays have to be created, that all happens in windows.
If you do use the SSD,
Move all your personal folders(desktop/docs/pics/music/vids ect) to the hard drive to save space.
Another cool thing you can do is move your full profile to the hard drive to save space. Check this post from djscribbles
http://www.tomshardware.com/forum/286458-32-ssds-info-please#t1937735
Another option with the games would also be to create links to the games from the SSD to the hard drive. This way the game looks to be on the SSD but in fact the data is on the hard drive.
Junction Link Magic -
http://www.rekenwonder.com/linkmagic.htm
Junction Link Magic allows you to create a link from one drive to another. I use it to keep my most used games on a SSD while windows sees them as on the HDD. Why you may ask? Because this way, I do not have to reinstall games as far as they are concerned they have not moved. This also allows me to move games i am not playing back to the hard drive to save space on the SSD. In your case, games you are not using will move to the hard drive to save SSD space
This image has Just Cause 2 as an example. Windows 7 and 8 both share this game on my SSD, but they both see it in the steam folder.
http://img20.imageshack.us/img20/1989/junction.png
The game is only on f:
To use this
-Copy the game folder to another drive(SSD for me).
-Empty the game folder on your main drive. The folder has to be empty for this to you.
-Use Junction Link Magic to create a junction point from the game folder to the new copied game folder.
Once done, the game runs normal and and you no longer have that game taking SSD space.
To swap back it is easy, just remove the junction and copy the game folder contents back to its original location.
You can actually do this backwards as well, Install games to the HDD(Like d:\games\) and just move what you want to play or load fast to the SSD.
Some games do not load faster on SSD, so some experimentation will help you figure what to put on each drive.
If you play with Junction Link Magic, please do not mess with the junctions/links ect it windows already has. You can mess things up real bad.