Not sure if they are virtualized at runtime or not.
I do know I can create a virtual file for each character.
In IS Boxer Toolkit, I expand Virtual Files and click on Config.wtf
And then drag each character who I'd like to have unique settings down to that list.
Any changes I make, in game or at the launcher, is remembered on a per character basis.
I can change the view distance on one of my five in game.
And have it not affect the other four.
And when I log into the game in the future, the settings I changed are remembered.
This is with a single wow folder, no symbolic links etc.
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