This behavior is expected and by design, Vista upgrade is not designed to support profiles outside the system drive. At this moment, you need to use “USMT and Easy File Transfer” to migrate your system to Windows Vista
(http://technet2.microsoft.com/WindowsVista/en/library/1a3fbe72-9de8-4b94-b254-586a61843a041033.mspx?mfr=true) .
Reference:
User State Migration:
http://www.microsoft.com/technet/desktopdeployment/userstate/default.mspx
Zero Touch Installation (ZTI):
http://www.microsoft.com/technet/desktopdeployment/bdd/2007/ZeroTouch_7.mspx
Desktop Deployment Center - BDD 2007:
http://www.microsoft.com/technet/desktopdeployment/default.mspx
Vista Compatible Firewalls I am excited about the addition of Vista Compatible Firewalls to Windows Vista
64-Bit Support Solution for Updating the BIOS on Windows Vista x64 Machines (Robert McLaws) Steve Gibson's