>>Since it is a system component, it will always install on the system drive. You might get away with downloading the WI resdist bits from here, hack the Directory table in the MSI with Orca, and install it on d:. I make no guarantees about doing this, however, and haven't tried it myself.
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>So other than the hack, my only option is to reformat the machines ( and not let the person that set them up touch them anymore :) )?

One other suggestion is to get something like Partition Magic and increase the size of your partitions. Give some more to C: so you can install more stuff.

I will probably be doing this soon. When I installed WinNT 5 years ago, the software around didn't need to add that much stuff to the System drive. Now if you want install anything, it has to update those files and the partition I created (500 MB) isn't cutting it anymore.