Hi Dave,
To my understanding, if all your files (and pub) are on the CD, then you do not need to use the <SYSTEM_CD_DRIVE> as the drive path. An example where the CD path is needed, would be when the pub is on Hard Disk and the pub looks for files on the user's first CD-ROM drive.
So if the pub and all launched files are on CD, use <SYSTEM_PUBLICATION_DIR> as the parent path. Then even if the user places your CD into another CD drive all files point to the same path, as the CD is local to itself. A strong recommendation is to have the pub in the root directory on the CD.
In your example of <SYSTEM_CD_DRIVE>, use this instead:
<SYSTEM_PUBLICATION_DIR>\documents\file1.doc
Also, if the user creates a shortcut on the desktop to your pub, (and logically uses the same CD drive for that shortcut), then there should be no discrepancies in paths if you use <SYSTEM_PUBLICATION_DIR>.
