Checked, path is correct (no roaming in WinXP). I did notice this a few lines down:
DEFAULT_LOG_APPLICATION=<Default text editor>
I tried changing it to the path to the executable of my text editor (crimson editor), but FB seems to just ignore whatever I put in, and overwrite it back to "<Default text editor>". Could it be that FB doesn't properly hand over the file to open to the OS and tries some sort of shortcut instead, perhaps assuming everyone uses notepad?
And what does this setting do? Perhaps that default log application type needs to be different?