Just use the application data code that I posted in #3, check for the existence of the path (Directory.Exists) and if the path doesn't exist, create it (Directory.Create).

Note: this won't cover the case if a user has a name change (such as getting married); however, that would the responsibility of the network admin to properly migrate the user's settings in this case.

If the network admin doesn't migrate the settings, then your program should just recreate the default settings (by checking for existence of the file with File.Exists). There is no need to prompt the user for the old settings because most likely they won't know where to find them anyway (or a network admin may have wiped them out).