The OS should be installed onto the SSD for you. Because of the way OSX is written I would suggest keeping your user data location to the default on the SSD. Then point things like iTunes to a "Media" folder on the 2TB HDD as well as other data intensive things.
This is because the user specific app data is kept in the users folder. So you will lose the benefit of the SSD if when launching apps you still have to wait for the HDD to spin up.
If you want to change the user data location it can be done in the advanced options (right click) on your account in System Pref.
Hi, could you possible point me to further reading on your first two paragraphs here so I can understand them? Or maybe explain a little more if you are so inclined? I am a PC user looking to buy my first Mac, so I don't really follow your point. What is user data and how does it relate to an application (like iTunes) and how is it distinguished from, in this case, media data. I totally get the point of pointing an app to the media data it will use (music, video, .jpgs, etc.), just not how user data relates to this.
Thanks -- and definitely not looking to hijack the thread. It seemed reasonably on topic, though.