Data File For Installed App Location

I am using VS2008 and for the project I am creating, I have a "settings" text file I am using to save user defined settings like color theme, homepage, etcetera. It works fine, however, I am unsure as to how to handle the eventual distributed apps' destination folder/file.

Creating a pre-determined folder/file is easy enough, but what I'd like to do is make it part of the installed folder files, which should be:

I tried creating the file if it wasn't found, however this did not happen (Though I specified the above formatted pathway) perhaps because I was in debug but it should have saved the text file, which it did not and wasn't found anywhere after saving/creating one.

I have the InnoSetup application (Looks great BTW) and see I can include a starting default text file AND make a specific directory for it, but I am unsure as of yet how Inno works exactly, but would prefer testing it through debug before an install anyway. Wish SHOULD be able to be done, am I right?

The odd thing is that although the file was NOT created as specified when creating one, it DID save a setting when I re-ran/debugged the app. (Rather odd, how is this happening I wonder?)

Here is how I am trying to resolve my problem...[code...]

So I am also wondering... if I use the InnoSetup to "set up" the directory and file, and it is according to user-defined destination, how do I reflect that decision in my coding for reading and writting the file?

I could simply use a basic path like C:DATAFILES but this wouldn't be very professional, though fine for development purposes.