This is referring to what is called the "user data disk" which is an optional second disk (vmdk) that can be automatically created with the VM and is where the user's locally cached profile will reside instead of "C:\Documents and Settings". For instance, if you decide on 😧 then the locally cached profile for user "fred" will be in "D:\Documents and Settings\Fred" (or "D:\users\Fred" for Vista). The theory is that if the administrator decides to use a different image for a user who has already logged on and therefore has a profile, for instance to deploy a service pack or a new application, then the user will not lose their profile. The user data disk will be tied to a specific VM so is not shared between users or other VMs that the user may have access to.
Guy Leech
VMware vExpert 2009
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