I'm wondering if Application Settings are reliable for storing values?
I was thinking of storing my application's XML file path in there so when I run the program, it knows where the XML file is located even if the path was changed during last runtime.
Is there a chance that Application Settings could forget/dispose the file path value? Or maybe anything else related to that?
Are there better ways to accomplish my goal?
Yes, they are reliable. And they will do it very well because they will take under consideration OS-specific conventions and OS user profiles. So, I'd say it's a recommended practice.
There is a small catch: A later version of your application may look for settings for its own version, even if settings for an older version exist. In that case, you'll have to make sure that your app migrates the old settings and converts them to its own, instead of ignoring them. It's quite easy.
There is a bigger catch: Moving the app to another place in the disk will cause it to consider itself a new instance and make its own settings. If you want to avoid this behavior, you'll have to consider making a strongly named assembly (which I find inconvenient, to say the least).