Hi Dragan.
>But if I got this right, that's exactly where local data should go - user data, ini files, .data folder, etc etc.
No, local data should go into one of the writable folders discussed in
http://doughennig.blogspot.com/2007/01/finding-paths-for-special-folders.html. Alternatively, you can create a subdirectory of the application's folder, set permissions so users can write to it, and store them there. But definitely not in the app folder itself.
Doug