No you don’t. That is just a clean copy of the files - they are not used by VIZ. There should be a separate copy of the files installed into the VIZ defaults folder.
There is something I forgot to mention earlier though. The “Dynamite.VSP” folder might have been installed into your “Documents and Settings” folder because VIZ stores some configuration files there now, instead of in the main VIZ root folder.
I just need to run a few tests on VIZ 2008, and I’ll get back to you.
Also, Peter - don’t assume that Mental Ray will be slower than the Scanline Renderer. It’s all a question of using appropriate settings for Mental Ray to get the best out of it. It’s much more efficient at simulating daylight for instance, than the scanline renderer - but you have to be using Mental Ray components for sunlight, skylight, enviornment map, indirect illumination, exposure control to use it effectively. Sounds complicated, but DVSP 3.6 does a pretty good job of setting these things up for you automatically.