Error "Cannot create file "C:\Documents and Settings\username\Application Data\Quest Software\Toad for Oracle\11.5\User Files\CONNECTIONS.INI". The process cannot access the file because it is being used by another process" when leaving two instances of Toad idle for some time.
Generally this issue occurs when there is more than one instance of Toad running and left overnight, but it has occurred during the day, if Toad is left idle.
Newer versions of Toad are generally not designed to run multiple instances, as settings files are being written to regularly and there may be a timing conflict like the one above when two instance of Toad try to write to the same file at the same time.
WORKAROUND
Only have one instance of Toad running at one time
STATUS
Issue fixed in version 11.6. The latest version of Toad for Oracle can be downloaded here