If the ini file is not found on E or F, the BIOS will revert to the default settings which I *think* are the same as the settings found in the stock x2config.ini file. Assuming this is true, you will find the following is the default order in which the BIOS will look for dashboards.
dash1Name = c:avalaunch.xbe
dash2Name = c:evoxdash.xbe
dash3Name = c:unleashx.xbe
dash4Name = c:xbmc.xbe
dash5Name = c:xboxdash.xbe
So, if you add Avalaunch to the root of your C drive as avaluanch.xbe the BIOS will find this and load it as the dash without the ini file existing on your HDD. (again, assuming the "BIOS defaults" are the same as the virgin ini.) Personal preference, I would put the dash and other installed apps on E, or better yet F or G if you have them with an upgraded HDD. This will require that you put the ini on your drive and change it so that one of the dashxNames is e:avalaunch.xbe. (or f, or g) In mine the dash string is "dash1Name = f:dashes\ava\avalaunch.xbe" as on F I have a "dashes" subdirectory and within that I have separate directories for the dashes I play with. "ava" is where Avalaunch is located. But I'm probably just being anal.
-Whoopin'