Thiev: You should edit game.ini in your Documents\My Games\King's Bounty.
The one inside root data folder is the file that restores default settings.
There is no such folder in My Documents\My Games, so I could not edit the file there (I had checked on this first, since I suspected it could be there). However, taking what you said as a big ole hint, I was able to locate the file in the VirtualStore, since I'm not running King's Bounty as an admin.
Definitely helps to have found the right file to edit! Guess I should have ran King's Bounty as an admin from the start and avoided these issues. Oh well.
Thanks! I'll try out the settings in this file this evening.