I described and used Windows 2000 folder redirection in the following tips:

2206 » Windows 2000 folder redirection.

2771 » How do I redirect the 'My Documents' folder for all users?

Microsoft Knowledge Base Article 236621 describes:

If you try to move or rename the "Documents and Settings" folder in Windows, you receive the following error message:

"Documents and Settings is a Windows system folder and is required for Windows to run properly. It cannot be moved or renamed."...