The settings of a “Temp” folder available in the control menu are for the server part of the application only. Presumably, the pathname to “Temp” folders for workstations remains the same as default, to provide more compatibility in a heterogeneous network. However, you can change it manually!
C:\Users[username]\AppData\Roaming\Novosoft\Handy Backup 7\Settings\Services\workstation.hbl
(Here the [username] is a name of a user who own the instance of Handy Backup.)
Note: If you have installed Handy Backup under the “Local System” account, the path to a file is:
C:\Windows\System32\config\systemprofile\AppData\Roaming\Novosoft\Handy Backup 7\Settings\Services\workstation.hbl
See also: FAQ | Network Server Backup: