LOCALAPPDATA is one of the new environment variables included in Windows Vista, which points to the folder that stores the data for local (non-roaming) applications. To access the folder, run the command %LOCALAPPDATA% from Start, Search box in Windows Vista. This variable does not exist in earlier Windows Operating Systems. If you access this folder frequently in your Windows XP system, you may add the LOCALAPPDATA variable using the steps below.
Note: Alternately, you can open the Local Application Data folder in Windows XP and Windows Vista by running the command shell:Local AppData.
Add LOCALAPPDATA variable in Windows XP
Right-click on the My Computer icon and choose Properties
Click Advanced
Click Environment Variables
Under User variables section, click New
In the Variable name: field, type LOCALAPPDATA
In the Variable value: field, type %USERPROFILE%\Local Settings\Application Data

Click OK, OK, OK to close the dialog boxes.
The LOCALAPPDATA environment variable is now added. See if you can access the Local Application Data folder by running the command %LOCALAPPDATA% from Start, Run dialog. You can use this environment variable in Scripts and Batch files, as well.
Editor’s note: You can add or remove environment variables from command-line using Setx.exe, a Windows 2000 Resource Kit tool.
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Ouch, how clumsy!
Only a minority of people use english versions of Windows.
Run the following *.VBS during logon:
WScript.CreateObject(“WScript.Shell”).Environment(“VOLATILE”).Item(“LOCALAPPDATA”) = WScript.CreateObject(“Shell.Application”).NameSpace(28).Self.Path