"should I change the target path"
No, that is fine. The install program puts everything important in the 'Run' subfolder of 'Divine Divinity', with just miscellaneous links and text files in the 'Divine Divinity' folder, as well as 'Misc' and 'Uninstall' subfolders.
"I found the run folder & deleted all in it"
I hope you meant all of the files in the '..\Run\Dynamic' folder. <img src="/ubbthreads/images/graemlins/winkwink.gif" alt="" />