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The Substation Data folder contains "content", such as catalogs, parts databases, templates, and projects, along with various options profiles and settings. This folder is specified during installation but can be copied or moved afterward. The paths on the Setup dialog would need to be updated with any changes to the location of this folder.
The default paths are as follows, but check Setup for the actual path(s) being used by the software.
Windows XP:C:\Documents and Settings\All Users\Application Data\Bentley\Substation V8i\Substation Data
Windows7:C:\ProgramData\Bentley\Substation V8i\Substation Data
Windows XP:C:\Documents and Settings\All Users\Application Data\Bentley\Substation DataWindows Vista & Windows7:C:\ProgramData\Bentley\Substation Data
Promise Data folder