In the CheckPortableAppsSplitDIR: labeled section,
$SETTINGSDIRECTORY never gets set like it does in the rest of sections above it.
Previously mentioned error (test for "..App..", using "..Apps..") seems to be masking this. 
Also, Launcher seems to be ignoring the ini file setting for SettingsDirectory.
GIMP asks user to create setting folder in user's home folder on the machine.
Nit pick:
Check your comment in the GIMPEnvironment: labeled section.
 
      
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This is fixed in launcher 1.1.4.1 which is now posted to SourceForge. A note has been added to the Portable GIMP page to let interested users know.
Thanks for the catch.
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