Ok. I found the files. You have to do an advanced search and tell it to look in hidden and system folders. For those that have Vista and are using multiple accounts (possibly with a network), this is where Vista puts the files (at least in my case).
Savegames are located at:
C:\Users\{account name}\AppData\Local\VirtualStore\Program Files\Larian Studios\Beyond Divinity\savegames
The dynamic files are located at:
C:\Users\{account name}\AppData\Local\VirtualStore\Program Files\Larian Studios\Beyond Divinity\Acts\{Act Number}\Dynamic\
