The Config directory is where active, modifiable files are located. The Defaults directory is where the unmodified master copies of such files are located. So, the first time you use, say, a Delphi template, Multi-Edit copies Delphi.tpt from the Defaults directory to the Config directory, creates an index in the copied file, and uses it. It will continue to use that one unless it gets moved or deleted, in which case it repeats the startup sequence, and you get a brand new file, with any changes you may have made in the meantime gone.
Oh, and the copy-to location will be your personal one if you’re running the networked version, obviously.
Obviously, you should never modify anything in the Defaults directory (unless you like to live dangerously ). I suppose that directory isn’t named all that well, but the name goes back before my time.
Tamer of the Mongoose of a Thousand Aromas