Partitioning is a good idea. Simply dividing it in 2 means you can keep the OS and eveything else separated, meaning you lose no data at all with a reinstall (provided you make sure what you want to save is on the other partition).
If you're looking for better performance I'd suggest splitting up over multiple drives.
I have 3 drives, with a 64GB partition for Win7 and programs. Static data (installers etc), media and games are installed on other partitons or even other drives entirely. Never had any issues with the setup.
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Contritium praecedit superbia.
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