To add, opening up the .xml file in a text edititor and doing a change/all F:/ to J:/ works pretty good though!

I'm more than a little bothered about the "completely resync" issue though, since I have a LOT of contacts in my outlook directory that are about to get hosed. Is there an alternative way to extract my "Contacts" from my iPhone to get them backed up into the computer. iTunes is going to wipe them when I resync.

Time to jailbreak? Won't I lose all that if I do that too though?

Aha! Fixed it. Turns out, you can restore your Outlook info from a iPhone. Sweet!