As far as I can tell there is no reason to show a UAC prompt to the user, I can read/write to that directory as a non-admin user in Windows Explorer without any issues.
Yes, but here's the rub, if an admin writes to the common appdata folder, then a non-admin tries writing to the folder the writing will fail (unless you set the appropriate ACL settings for the files).
Thus, it doesn't *always* require admin permission to write to the folder, just when the first user to write the file was admin.
Does that make sense?