This is the way it works on the TypeX and TypeX2.
The disk is divided into two partitions: 1 and 2, A booted TypeX system sees these as drive C:\ and D:\
Windows is stored on the C:\ drive and the game is stored in the encrypted container in C:\TypeXsys\data\vdimg_ec.img
When the launcher starts, the encrypted container is mounted as read-only virtual drive E:\
The entire D:\ drive is used for configuration and save data.
Since each game resides on a HDD of it's own this is not an issue for the original games.