Tried to replicate the behaviour. Made a new folder called DP+ in my c:\user\<loginname> directory. Changed Xara Designer Pro + settings (Options/Backups/ etc...)

No problems for me. Xara did what it was told to do and made the required backups in the intended folder.

So: there is something else going on there in Albury, NSW.

I hardly dare to ask for I know delving in he Registry is frowned upon in this forum, but would Peter be so kind to inform us what the entry is of the key "Computer\HKEY_CURRENT_USER\SOFTWARE\Xara\XtremePr oSub x64\18\Options\Backups" ?