Setup Project File Path

Does anyone know how to tweak a .NET Setup Project to have it look in
the target directory where the installed files land up, and NOT in "C:
\WINNT\system32"? After my Windows Service starts up i get the error:
"Could not find file 'C:\WINNT\system32\ConfigFile.txt'" (as it's not
there, it's in the user specified target directory).

I.e. my Windows Service has a config file that it needs to read upon
startup...

Is there also a way to specify a default directory for output files to
be written to also, rather than the system32 folder?

thanks so much, dave