I would think that both Lightroom, catalog and previews ought to go on the SSD, if there is enough space. (I can't really comment about Photoshop...) The photos don't need to be on a SSD
If the SSD is the primary drive then thats where you will put any applications.
Keeping the Catalogs and preview on the SSD will be the fastest option.
With Photoshop your limitation is going to be in the Scratch Disk space available on 128GB drive. I would choose an alternate drive if available and internal especially if you plan on working larger or multi layer files.
This is pretty much what I was thinking. I am starting to realizze that maybe a 128GB SSD might be too small as it will have Windows 8 on it as well.
Images of course will be remaining on their original magnetic HDs
My OS runs on a 128GB SSD with all my apps.
My Catalogs are on the SSD along with Previews (almost 10gb)
I try to keep my SSD with at least 15-20GB free (empty downloads folder regularly)
My PS scratch is on an internal 2TB drive as my files range up to 2GB at times.
All images are stored on internal Spinning drives
I am starting to realizze that maybe a 128GB SSD might be too small as it will have Windows 8 on it as well.
I concur - that's a relatively small system drive. Unless your catalog (and previews) is very small, find a bigger drive for it. I mean, you can do that at any time, but my guess: you'll need to do it fairly soon anyway..