You must define two environments variables called HYP_REG and HYP_CERR.
The first one is the directory to emulate the Windows Registry.
The second is the path for different log files of the applications. I have added these lines to my autoexec.bat:
SET HYP_REG=c:\hyp_registry\
SET HYP_CERR=c:\
Anti-virus could cause some problems during the definition of these environment variables. You must reboot your computer to active the environment variables.