Game wants to reinstall itself
The "where I'm installed" settings for CoX are stored per-user, so the first time you run as a new account you will get prompted.
If you tell it it's installed one level up from the actual games file directory (e.g. if the files are in "D:\Games\City of Heroes", tell it "D:\Games") it should stop asking after that initial query, though.
On trying run COV on a different user account on my computer, trying to launch the updater makes the game want to reinstall itself.
The game is already fully installed and updated, and i can't see any reason it would want to reinstall itself into the same directory even though it is already there.
Any help is appreciated.