Sounds like you need a External Hard Drive. Office Max has a few, they put them on sale pretty often. I bought one with 500 GB (on sale and the last I checked they lowered the prices).
Yes you can. It will move your stuff wherever you want it to be for you if you want it to.
You can make any folder a shared folder by changing it's sharing properties. I'm not sure what you mean by redirect.
It may be the difference between home and pro versions but I believe you mean your My Documents folder? In pro, that's the default for documents, music, photos, video etc. .
Sorry I can't help more. I only use Pro and I haven't seen a home version of XP since the last of the VP44 Cummins' were new.
move "shared documents" to another drive
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