I'm pretty sure that deep freeze partitions the drive and when you reboot (I'm not sure if it's before you turn them off or when you turn them on either) it makes the two partitions identical. Or something like that.
At my school we've got a program called HD Guard, if these programs work the same then whatever it looks like your doing to the C: drive is actually happening to a temp file on the server, then when the computer is reset the temp file is deleted and a new one is started. So your never actually putting anything on the HDD.
Accessing C:\
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At my school we've got a program called HD Guard, if these programs work the same then whatever it looks like your doing to the C: drive is actually happening to a temp file on the server, then when the computer is reset the temp file is deleted and a new one is started. So your never actually putting anything on the HDD.