Hi rajan_b,
I performed a test about upgrading my application using the Application Settings (user-scoped settings) to let change the configuration of my application, when I release a new version, the user settings didn’t reset. Since the non-default (changed by end user) user-scoped settings are stored in a new file, user.config, where user is the user name of the person currently executing the application, it is not uninstall during uninstall. More information, please check the following article:
· http://msdn2.microsoft.com/en-us/library/8eyb2ct1.aspx
If you are working with a common xml file, I would suggest you not remove this xml file when the application is uninstalled by set the Permanent Property to true. When upgrading the application, you can use a File Launch Condition to determine whether to install the xml file. If the File Search finds the xml file, you should not install the xml file, otherwise, install it.
Hope this helps.
Best regards.
Rong-Chun Zhang