You cannot (should not) hard-code the path. Instead, ask Windows where to store it by calling SHGetFolderPath, which can be used to return the location of the current user's (or all users) AppData directory.
MSDN article, with C solution:
http://support.microsoft.com/kb/310294
Useful Delphi example:
http://delphi.about.com/od/kbwinshell/a/SHGetFolderPath.htm
Note that it is hazardous to do a one-time query for the path, convert to an absolute string, and store that in your settings. Because Windows can change it. They can join a domain, upgrade windows, etc., and windows may indeed move your files. If you then point at the old location, without asking again "where is this folder", you'll break. Been there, done that...