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I tested this under Windows 2000, but it should be the same
under Windows XP.

This should be documented somewhere... maybe.

After a bit more experiementing tonight I discovered that the
following needs to be in setup with Althea *closed*:
1. Create a folder with *no* spaces in its name nor in the
name of its parents, eg: c:\home, or c:\usr\local\fnerk
2. Create a User Environment variable called HOME which
contains the full path to the directory you created. You can
do this by the following:
a. Bring up the System control panel (Windows-Pause).
b. Click on the Advanced tab.
c. Click on the Environment Variables... button.
d. In the user variables section, click the New... button.
e. Name it "HOME" and set the value to "c:\home"
or "c:\usr\local\fnerk"
f. Click OK all the way back.
3. Start Althea and create/edit a server configuration. When
you click OK you should notice a ".althearc" file appear in your
selected directory.

I'd like to see Althea handle spaces in the folder path and
even create the necessary folder path to save the .althearc
file, but it's not a show-stopper so long as people can be
made aware of the requirements.