What is the best way to store user settings for a .NET application?

I have a .NET 2.0 Windows Forms application. Where is the best place the store user settings (considering Windows guidelines)?

Some people pointed to Application.LocalUserAppDataPath. However, that creates a folder structure like:

C:\Documents and Settings\user_name\Local Settings\Application Data\company_name\product_name\product_version\

If I release version 1 of my application and store an XML file there, then release version 2, that would change to a different folder, right? I'd prefer to have a single folder, per user, to store settings, regardless of the application version. ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­