C:\PROGRAM FILES\ROAD RUNNER\
and you copy the livetraffic folder to that directory, you should have
C:\PROGRAM FILES\ROAD RUNNER\livetraffic\
inside that file there is "livetraffic.ini", that needs to be edited to point at the skin folder where you will be running the livetraffic skin. i.e.
my skin folder setup is:
C:\PROGRAM FILES\ROAD RUNNER\SKINS\COBRA_08\SKIN\
so that is were the ini file should point and will be where the livetraffic program 'dumps' all the pictures it downloads.
Screenshot of my traffic skin: