I got this one finally... Just for reference here is what I did.
Stopped IISADMIN and all associated services.
Using an editor like editplus I opened the metabase.xml file located in system32/inetsrv
relaced c:\inetpub with e:\inetpub
Saved the file as metabase.new.xml (would not let me save over it even though I had told the server to let me edit the file)
Renamed existing metabase.xml to metabase.old.xml
Ran regedit and did a search for c:\inetpub and replaced the c: with e: in all data and key names where it occured
renamed metadata.new.xml to metadata.xml
Restarted iisadmin and all services shut down with it FTP SMTP WWW HTTP SSL ect
All worked fine.. did a reboot and verified all worked correctly... this was done on a new install with no sites other then default and frontpage extensions not on the root. would be a bit harder with a bunch of sites.
.