First make sure you do the steps in the following link:
http://www.mtu.com/upgrades/hoster/v...de-hoster4.htm
Nothing should go in the Documents and settings as Windows 7 and Vista both hide anything put in there.
What are you copying your backup songs folder from?
If by backup song folder you are referring to the KMA files you are transfering from another computer, then you can put them anywhere you desire. If you are putting them on the C: drive then the place to put them is C:\MTU\Songs\.
Then make sure when you rebuild the database that the folders listed are the correct path to where you put them.