Active Directory on separate volumes?

I have seen numerous discussions with people on the benefits and drawbacks of putting Active Directory files and folders on a separate volume or even on several separate volumes. Time to makes some things clear!

Transitioning your Active Directory to Windows Server 2008

You might be running Windows Server 2003 and Windows Server 2003 R2 Domain Controllers at the moment and you're looking to replace these servers with Windows Server 2008 Domain Controllers to utilize the new features of Windows Server 2008. You might also be looking to replace your aging Windows Server 2003 and Windows Server 2003 R2 Domain Controllers with spanking new Windows Server 2008 Domain Controllers, while keeping your Active Directory running smoothly.

This post intends to help you with this transition in a structured, balanced and thorough way.