Move 'Pictures', 'Documents', 'Movies' etc folders
Art,

Do you have this working successfully?

Have you tried hiding the folders using something like:

chflags hidden ~/Documents 


Then creating a link to it such as (in Terminal):

cd ~
mkdir stuff
cd stuff
ln -s ~/Documents


I believe that this will hide the ~/Documents folder from the Finder but it will still be there so anything writing to it will work OK.  In addition you will see the link in ~/stuff...