Over the weekend the hard drive in my laptop died, and I had to set up offline caching from scratch. I couldn’t find the article that I wrote on how to redirect the cache, but I did find a Microsoft Knowledgebase article on the subject at: http://support.microsoft.com/kb/937475

One thing that I will tell you about the technique that is outlined in the article is that you really do have to follow the steps in order. Offline caching is enabled by default in Vista, and you absolutely have to disable it and reboot the machine before you begin, or the technique in the KB article won’t work. After you reboot the system, it’s time to make the registry modification listed in the article. After doing so, you have to reboot again. Next, go ahead and enable offline caching, and reboot one more time.  Rebooting after each step is essential to the technique’s success.

When you are done, you can set Windows to show hidden files and folders. When you do, you should see a folder named CSC in the root directory of the designated hard drive. I recommend checking for the existence of this folder before you actually begin synchronizing your offline files, because if Windows has not created the folder, it means that you have done something wrong and the offline files are going to be cached onto your system drive.