The files CONNECTIONS.INI and CONNECTIONPWDS.INI usually are saved within the directory: "C:\Program Files\Quest Software\Toad for Oracle\User Files" unless its a Citrix install.
All users that have the privileges to start Toad on that computer or server can see the same connections. If the passwords are saved, they will have access to the same database connections.
Is it possible to have the connections.ini for security reasons within the 'Documents and Settings\<Username>' directory?
Install Citrix install of Toad for Oracle. Note that the entire User Files folder will be located in the 'Documents and Settings\<Username>'\Application Data\Quest Software\Toad for Oracle\User Files' directory.
Enhancement request has been submitted to Development for consideration in a future release of Toad for Oracle.