from what I can tell there is no <TemplatesDirectory> inside it for some reason.
I think this is due the fact the defaults are not stored to config file. (I have not such entry too in my config)
Only if you use other values then factory default, then this is written to the config.
(but i don't know if is anyhow possible to relocate the templates folder?)
I use HippoEDIT 1.49.822 as portable on XP and
"File->New->Manage File Templates" works for me,
WinEx opens with "D:\rive\pathTo\HippoEDIT\data\templates"
(i can test on W7 too if needed)
the directory exists for me but still the FileExplorer doesn't pop up on Vista.
Can you post this path?
You can find the current ussed path to the "data" folder in "Help > About"
The "templates" folder is by default an sub-folder of "data".
Do you have 32- or 64-bit?
Do you have UAC enabled?