Hi dotcom,
If you have not set property "SecurityPolicyFile" for the editor, then the default security setting file is \CuteSoft_Client\CuteEditor\Configuration\Security\Default.config
For the insert image dialog, you can change the store folder location by the section below
<security name="ImageBrowserPath">~/uploads</security>
More details please refer to http://cutesoft.net/developer+guide/scr/Specifying-images-path.htm
Regards,
Ken