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Once Steam has restarted, go back into the Steam Settings and this time go to the Downloads + Cloud tab. At the bottom will be a "Steam Library Folders" button. Set up a library folder on your other partition.
Source SDK Base probably isn't part of the new content management system, then. You'll just have to free up some space by deleting other games or programs on your C drive.
Maybe give that a try?
Make sure when you're launching Steam, though, that you're launching it from the D: Drive.