any issue with installing snow leapord with home folder on a different hard drive?

Actually its quite a good idea, but one that apple dissuades its users from doing.

By keeping your OS and data separate you can provide faster performance when you have the appropriate hardware, i.e., two physical disks on a MacPRo. You provide more data security, i.e., the OS gets hosed, your data should be ok upgrading will not touch the data partition.

I work on servers and we have separate file systems for the unix boxes and our window servers have the OS on the C drive and the data on the E drive. Makes more sense to go that route, but apple likes to keep things locked down according to what they perceive to be right.