The Answer to Many Questions

[Paul Kuepfer]

1% of the water a tree takes up is for photosynthesis. 

5% of the water a tree intakes is for 'making new cells'.

What happens to the rest of the water? Or rather, what is the rest of the water used for?

[Paul Kuepfer]

David, you are right and wrong. 

For the skinny, check out http://youtu.be/BickMFHAZR0 and start at just before the 4:15 mark.

[David MacLeod]

Water is used as a transport medium for essential nutrients, and it provides the "turgor pressure" - the hydration essential for life.