That's correct. The combat log should be in the same path but in a Combat Log folder. The client isn't creating either even after combat or screenshots. It's been really frustrating getting it to work.

My client is not creating a combat log or screenshot folder. Is anyone else having this issue? Fresh install in safemode with networking Windows 7 Ultimate Administrator account. It is not appearing in the default location.

Same here.

Option 2 seems very feasable and I don't know why that hasn't been done before.