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should work as you described. Not tested it for myself, I normally install Steam to the default-location but configure the library to another drive. If I somehow change that drive I only have to add/change the library-path ...
Thanks, but in your example you are talking about games which have already been installed on the system, aren't you?
As this is a first time install on a new build Steam will have to "reinstall" all these games, I am hoping if the games data is already present in the install location that steam wont try to dl it all again and overwrite it but will simply acquire the files which are missing and create the reg keys for the installation.
From my experiance, it won't let you install Steam in a directory where files already exist.