SH3 re-install question

Bought the new ,Starforce free & prepatched, SH2/SH3 combination disk.
Decided to dump the old install in preperation of a Vista to Windows 7 upgrade.

Can I put the new install in the "Saved play" folder?
It's been empty for the 2 years I have had this computer.

If I put it in "C", "C-Programs", or "C-Play"(homemade folder), Vista won't even allow me to change "Neutral -1" to "Neutral 1" in the Basic File.

(I'm considering a carreer of only attacking shipping in convoys. There are just too many independents sailing around, but in exchange I want the right to sink anything in a hostile convoy.)

OS = Windows Vista, Home Premium, DA.