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Heh, don't get me started on Microsoft shooting themselves in the foot and making the rest of us hurt.
I have Vista here. It works, but not the way Vista was configured when you got it. In your Windows Explorer is a menu that opens a set of options, and one of those is "Hide protected operating system files (Recommended)."
You want to turn that off. It will give you dire warnings, so if you are not confident that you might make a mistake, then don't do it. But after turning that off, you will now be able to see a directory in your UserName called AppData. A subfolder in there called "Roaming" should have your "MilkShape 3D 1.xx" folder, with the existing shortcuts.ini file you need.
<* Wes *>
If you like to say what you think, be sure you know which to do first.