It seems that again Adobe is unable to code programs that accept any user configuration that Windows supports and especially make it hard to run their programs in managed network environments. As if it is so hard to read and parse a few registry keys *sigh*...
Anyway, the solution that worked for me, was to create a "My Digital Editions" folder myself under my redirected "My documents" folder. I wonder why Adobe couldn't either fix nor get the workaround themselves.
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