• Funny, I initially chose the Resource database cannot be moved, but then after checking my local BOL I changed to all can be moved. If you check the online BOL it shows it cannot be moved in SQL 2008 and 2008 R2. Although, I wonder if it really can be moved in 2008 (non R2) considering the inconsistent documentation.

    From my local BOL ms-help://MS.SQLCC.v10/MS.SQLSVR.v10.en/s10de_1devconc/html/72bb62ee-9602-4f71-be51-c466c1670878.htm

    Moving the Resource Database

    In SQL Server 2008, the default location of the Resource database is <drive>:\Program Files\Microsoft SQL Server\MSSQL10.<instance_name>\Binn\. The database can be moved; however, we recommend against moving it for two reasons:

    Applying SQL Server service packs and hotfixes restores the database to the \Binn location.

    Moving the Resource database in a failover cluster environment to a nonclustered location will cause failover cluster failure.

    To move the Resource database, follow these steps.