Yes it can be done, Iv written a manual on how you can do it, but I really dont want to use a whole Friday night on it here.
Ill give you some Hint words so that you can get started, google your way to it.
Microsft has a program called SYSPREP.exe. It was included in Windows 2000 cd. It getÂ´s your pc ready for imaging. After you have set up a computer like you want it, then you run sysprep. Answer the questions that it prompts you for. Rememeber the switches that can be used with the program. The most important one is /pnp. This will make windows search for your hardware after reboot.
Reboot the computer with a imaging program like Ghost/Drive image. remember to use the newest version of Ghost/Drive image if you are working with XP. Image the harddrive. Save the image to a local location or cd.
Restore the image to the partition that you want. After you have reboot with the correct partition, Windows will run the mini setup wizard and search for your hardware.
Like I said, this is just a very fast explanation about the sysprep program.
The wife is waiting with coffee so Ill leave the rest up to you. Google for the info that you need but you can find alot of it on Microsofts website.
Partition Magic has also a tool to move all setting and register setting to a new location, but I dont know if it can do the C:<