Install Postgres on a SAN volume?

[William Garrison <postgres@xxxxxxxxxxxx>]

We are using PostgreSQL 8.2.9 on Windows, and we are setting up some new 
machines.  We used to install PostgreSQL on C: and then we put the 
tablespaces onto our SAN drive (Z:).  When we tried to mount the 
snapshots of the SAN we learned that they were useless since we only had 
the tablespaces, not all the other stuff.  So we are considering two 
options:

1) We could install PostgreSQL directly onto the SAN volume.  That puts 
the data directory, the application files, tools, EXEs, DLLs, etc. on 
the SAN volume
2) We could install PostgreSQL onto the C: drive and then configure the 
data folder to be on the SAN volume (Z:) 

I'm not the hardware guy, but our SAN is supposedly superly-duperly 
fast, RAID with mirrors stripes and even plaid.  The connection is dual 
fiber channels, is hardened against nuclear strikes, and includes a 
laser defense system.  So I am assured it is fast.  Option #1 is the 
simplest, and offers us lots of advantages.  But I can't help but wonder 
if putting the actual application files and transaction logs on there is 
smart.  It is really nice because it supports instant snapshots so we 
can, in theory, snapshot a volume and re-mount it elsewhere.  But I am 
looking for any down sides to doing it this way.  Any suggestions from 
Postgres veterans?

Thanks.