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I found this 'D3Prefs.txt' file in a folder called 'Diablo III' which had appeared in the 'My Documents' folder.
I assumed this file was created during installation or something so I deleted it and the folder it appeared in.
The next time I started Diablo III my graphics settings had reverted to some sort of basic setting and after I had reset my preferences for resolution etc I found that once again I had this folder and file in 'My Documents'.
I use the 'My Documents' folder for immediate downloads if necessary, and any files downloaded there are then moved to a proper folder, I don't like this folder filling up with random rubbish.
What I would like to know is, why is this file clogging up the 'My Documents' folder and not in the 'Program Files/Diablo III' folder where it should be?
Is there any way to get Diablo III to look for this file elsewhere?
This is just the location where the game stores some local settings related to options like resolution etc.
You can alter this by changing the default My Documents location, as said here:
However the game will always create this file in My Documents, there is nothing we can really advise to stop that.