I'm pretty sure that the settings file is an ascii text file. So you should be able to open it in Notepad++ or even Word and see that it is intact, not that you'll be able to figure out what the problem is. Best bet is to send it off to your VAR to have them and SW look at it.
Edit to Add: I see you posted SAVE not import. Is the file he's writing to Read-Only?...Answer seems to be still to get with your VAR.
It may be a permission issue with the registry keys. See if the user can open the registry editor and access those keys. If the user can, see if a new key and/or value can be created. Also, see if the user can manually export the "solidworks" key under current user/software.
A corrupt file?
I'm pretty sure that the settings file is an ascii text file. So you should be able to open it in Notepad++ or even Word and see that it is intact, not that you'll be able to figure out what the problem is. Best bet is to send it off to your VAR to have them and SW look at it.
Edit to Add: I see you posted SAVE not import. Is the file he's writing to Read-Only?...Answer seems to be still to get with your VAR.