Moving C:\Users to another partition on Windows Server 2008 Standard

Yes it is possible. See this kb article- Relocation of the Users directory and the ProgramData directory. The best way to do it is during the install. Manually moving it after the system is installed will probably not be supported by Microsoft. If you don't follow the recommended method for relocating the folder you can have problems. Do make sure you read the note about applying the service packs which address some issues with relocated folders.