Microsoft and many others have written articles on moving system databases in MSSQL server, however they all leave one important step out which frustrated me to no end until I figured it out.
Here’s the M$ article http://support.microsoft.com/kb/224071/
What they miss out is that when restarting the service you should do so from the command line. To do this execute the following from a command prompt. “NET START MSSQLSERVER /c /m /T3608″
