Where to install Steam (Skyrim)

Solution
The best will be on an SSD. But as the SSD has a limit to 120GB. Maybe only Skyrim and another game, and the OS can be installed on there. But it will be great if you can get at least 120GB SSD and a 1TB HDD. :)


Thats exactly my system. 1TB HDD and a 120GB SSD. And why install Windows on the SSD?
 
As Joeteoh99 stated, OS and Skyrim are definately SSD material, so long as you have room. Putting the OS on a SSD made my computer feel like a whole new machine with how responsive it is and amazing boot times (less than 30 seconds to reboot and get back into windows again!). If you have a SSD and not put the OS on it you are missing out on one of the primary reasons the drives exist, do it, quickly, there's no time!

Skyrim, especially if you have a lot of mods installed, really likes the SSD too, fairly seamless transistion into dungeons/houses and loading new areas dosen't make the game stutter (maybe for a quarter of a second on my system).
 


Definitely going to install both Skyrim and the OS onto my SSD then! My build will be finished when my SSD arrives tomorrow so when i install WIndows (which i am doing via USB) will it be fairly obvious how to install to an SSD or do i need to look it up?
 
You will be able to install to it just like any other drive, just faster. You might need to make sure it is set to the primary boot drive in BIOS/UEFI. Win 8.1 installer gave me a bit of trouble there, but I had another SSD set as the boot drive (that has Win7 on it) and it didn't like that.