Changing the WSUS Client LOCAL download location

I have got 3 OS in an environment with Windows 2003 XP and Windows 2003. Similarly, all of the systems configurations are different depending on the time preriod in which the system was build and what the system build standard was at time. We are also using the WSUS 3.0. The problems that I am facing is that the system partition which is the C: drive is not large enough to #4 that has auto-download and notify for install. Because of the nature of the fast time frame and circumstances of production servers, it is easier and more suitable of the download that takes place locally from WSUS to the machine.

After doing some more research, I am able to see that the loca client downlaod path is very hard coded, is that right? If it is so, then it seems to me a bug and a great suggestion would be to have this location a registry setting or something that can be changed. So now, I will be able to safely delete all the previously downloaded and uninstalled files in that %windir%\SoftwareDistribution\Download directory?

I dont think that you will be able to change the location but you might be able to replace the SoftwareDistribution folder with a Junction Point to a folder on another drive. I havent done this on any live servers but it will not cause any issues on my test server.