Refresh installation, Windows.old, small OS SSD...?

I have multiple SSDs and HDDs with games and data on them as well as one small 60GB SSD just for my OS.

I have my original Windows 8 retail disc, but I have upgraded to Windows 8.1 since then. Recently my computer has been freezing and Windows systems (such as hitting CTRL ALT DEL) have been failing to function properly. I have determined with help from others on different forums that my SSD is not damaged and that my issue is not a virus, so the only other alternative they have suggested is I either re-install Windows completely or do a repair installation... I chose the latter due to my lack of a sizable external drive to back my data up on.

In attempting to do the repair, howerver, the only option on the Windows 8 launcher for what files to keep is "Nothing." I did some Google searches and apparently even when that option is selected, you retain your files in a folder called Windows.old after the installation finishes... That is where my problem emerges... How does this system function exactly?

I have 512GB of SSD storage for my games and 2TB of HDD storage for video and other programs. Where I am installing the OS though, as I said before, is only 60GB... I am assuming it tries to keep the Windows.old file with the new installation of Windows correct? Or is that wrong? Will it have individual Windows.old files on each drive? Will it have one big one on whatever drive it chooses that is big enough? Or does it just not create a Windows.old file because the 60GB SSD is not large enough to retain it?

Thank you very much for the help.

I'm actually about to do a very similar thing.. I am going to fresh clean install windows on my smaller 60gig SSD m.2 card..
and use my 250gig 840 EVO for games believe it or not..

But whats the problem?? copy your crap from your computer that you want to save to one of your hdd that you are not deleting.. (an external one if you have) and then do a fresh install.. clean install.. you wipe the disk using "diskpart" .. and a clean command.. but google it or ask if you dont know it..

why try to keep your old system? and it will only create the backup on 1 drive.. and probably the one you install windows on is the most logical and common sense idea..

If you have anything you want to save from the 60GB drive, copy the files you want to save to another drive..

use the Microsoft Windows 8.1 Media Creation Tool and download updated installation media.. boot from media, choose custom and then the 60GB drive, remove every partition on the 60GB drive and point installation to the 60GB - setup will create its own partitions and then continue with a clean install