You can prevent sms from creating a smspkgc$ folder by putting a text file in the
root of C: called no_sms_on_drive.sms, assuming you are running SMS 2003 SP2 (sp1 and earlier don't recognize it).

But you don't want to just copy the folders from smspkgc$ to smspkge$.  I'd remove the distribution point for those packages in the smspkgc$.  When you see the folders disappear from smspkgc$, then unshare smspkgc$ (if it didn't do so for you; I've never personally done this) and delete smspkgc$, the now empty folder, and put the file no_sms_on_drive.sms on the root of C:

Now, re-add the distribution point back, and the folders should be created under smspkge$, where you want them.

As to why it created it in the first place; when sending a package, SMS looks at the server, and whichever drive has the largest amount of free space at the time gets the package, even if it has to create a new folder, like smspkgc$.

Microsoft's article on no_sms_on_drive.sms: http://support.microsoft.com/kb/871234

Blog: http://myitforum.com/cs2/blogs/skissinger/

The other thing you could do is make your own share instead of the the "SMS" made $ share (it puts it where the most available free space is and is dynamic in where it will place things)  This way you choose where you want that DP to store info and SMS won't make one for that DP.

Wow, thank you so much guys for the information.  This is exactly what I was looking for.....a better understanding of the SMS process.  These are the things that aren't in books.  I had no idea that SMS worked this way when it comes to directing packages to it's DP's.  It would be nice to have a setting (file path) located in the DP settings of the Admin Console.  Unfortunately one has to remote to every SMS server to verify the DP installation folder.

So I thank both skissinger as well as tbrennans for your input, I appreciate it.

Have a good rest of the week and holiday.
ron