One particular incident that illustrates this point happened to a user who called me one day saying his entire Microsoft Entourage store of emails, contacts, etc. had just "disappeared" and Entourage had "reset to when it was new." Well, naturally that sounded a bit odd to me so I went over to see what I could do to resolve this little problem.
After a bit of searching around I discovered the user had "accidentally" moved a very important folder out of a folder called "Documents" (which is located in his individual "Users" folder) to the Trash. For the win, can you guess which folder he threw in the trash? iI you guessed it was his "Microsoft User Data" folder, you would be correct.
Fortunately for this particular user, after moving the folder back where it belonged all was well with Entourage and his data was restored. Let's go over that again, just to be clear. This particular folder, the "Microsoft User Data" folder, is located in your particular "Documents" folder on the hard drive of your computer.