untarring under /drive0 or /drive1 is essential. Instead of copying things over, you should use symbolic links. Symbolic links are features of most unix filesystems and act like windows shortcuts, but at filesystem-level. To create a symlink :
ln -s [dest file/directory] [new file/directory]
so for /lib :
mv /lib /lib.org
ln -s /drive0/lib /lib
Speaking of symlinks; I read an article some time ago about new revolutionary technology from microsoft. It had a story about something similar to hard links, but the difference was that if one of the linked files was changed, a copy is made. Why would anyone want that? Save diskspace?
BTW: the debian image isn't mine. I downloaded it from somewhere ( can't remember where ) and started hosting it...
Frank van Gestel