Since a new Windows user profile has implications beyond this situation, try this remedy first.
Create a new folder under LT's program files root folder:
C:\Program Files\AutoCAD LT 2008\AutoSave
Add this path to your list of support paths under OPTIONS.
By removing this from inside a user's Windows profile, others can assist/perform an AutoSave recovery without having to have the user's login and without having to have admin privileges to open another's Windows profile.