SmartUpgrade does not honour the directory variable in the notes.ini when upgrading the Notes Client

I am upgrading the Notes Client from 6.5.1 to 6.5.3 through SmartUpgrade. The end user store their local databases in a network share accessile by UNC notation. The data path is configured in the notes.ini variable Directory.

The problem is that the upgrade process does not take into account this setting when upgrading the release and install all the data files in the default data directory c:\notes\data

Any ideas?