The workaround we are using (until we can move to BI 4.0 Patch 6.5 or 7.1) -
set client machine environment variable
BO_TRACE_LOGDIR to value -> c:\temp
This puts the TraceLog*.glf in c:\temp, at least it's not on the desktop.
Make sure you close all browsers after making the change before re-testing.
This has made a few users happier, but is difficult to implement with a user base as large as ours.