From Jay: Yes, that line is what tells the reading order to ZT. Things to the right in that order will be read before things to the left, allowing the things on the left to override things read on the right. But "loc" is read second. To the right of that is ";.". That "." means ZT's main folder is read first. This order applies to ".ztd" files but not ".dll" files. ZT will only read ".dll" files that are in ZT's main folder. As for hacks, I feel they should be in a hacks folder, since some hacks affect things in the dlupdate folder. I talk about this in the "Combined Guest Hack For ZT Community" topic at DD:
http://www.ztcdd.org/DD/index.php?topic=11622.0