D2:ED doesn't use a config.div file, and this is a Divine Divinity forum.
For D2:ED see the topic
major bug with resolutions (i have a fix for you); the graphics options file is in the folder
C:\Users\ %username% \AppData\Local\Divinity 2\Profile
For Divine Divinity, the download version got rid of the run folder, and moved everything up one level. As described above (Vista/7 remapping savegame folders, etc) the configuration file may be in the folder below.
C:\Users\ %account name% \AppData\Local\VirtualStore\Program Files\Divine Divinity