Tried again with an uninstall.reinstall, still have no files in the My Documents/My Games/elemental folder (apart from debug).
Steps taken:
1. Use impulse to uninstall Elemental.
2. The C:/Documents and Settings/All Users/Application Data/Stardock/Elemental-War of Magic and D:/My Documents/My Games/Elemental folders still exist after doing this uninstall, so I delete those.
3. Reinstall using Impulse. Reinstalling installs the game in C:/Program Files/Stardock Games/Elemental. It does not install any D:/My Documents/My Games/Elemental folder. It may also not have installed the C:/Documents and Settings/Application Data/Stardock/Elemental folder either, but unfortunately I've forgotted at this point.
4. I move the elemental folder to D:/Program files/Stardock Games/Elemental. The D: drive is where I keep all other stardock games (the folder paths are equivalent to what they would be in the C drive), but I did not see a way in impulse to install games directly here. I move the folder to the D: drive, than use whichever impulse function (forget the name) it is where I select the folder location for an installed game. I also update to the current beta (The game was installed at 0.0, or some other 0 number.)
5. I attempt to verify installation. Verifying says that elemental is installed correctly.
6. I attempt to run elemental. The game plays that "You travel north" video up tyo the "Press space bar" screen. I press space bar, the game crashes to desktop. A "D:/My Documents/My Games/Elemental" folder is created, with a bunch of subfolders, a debug.err file, and a prefs file. All of the subfolders are empty. The "C:/Documents and Settings/Stardock/Elemental" folder is also here, though again I have forgotten whether it was missing before.
7. Verify installation again says that the game is installed correctly.
The pastebin link for the debuig file is here:
http://pastebin.com/RGWBiQy4