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The version I'm using (6.2.1 in free/light/full) seems to completely ignore the 'Installation Path' specified in the settings page and ignores completely any value that the 'settuppage' variable is set to as well.

Regardless of anything I say or do, the 'Dialog - Setup Path' 'Destination folder' path always shows the default path of '#progfiles#\#progname#'.

This default does not work for me as this application is part of a suite of applications and I want to install it in an appropriate subdirectory.

Others must be having this issue or else I'm doing something completely wrong. Help please!

I think you have the checked 'Save Path for subsequent updates' in 'Dialog - Setup Path' command. You ran the setup with C:\Program Files (x86)\ProgramName and this path was saved.
Now your next setups get this path and use it.
1. Uninstall previous installations for this project.
2. Uncheck that checkbox.

You can send your .ci project file to info@createinstall.com with 'CreateInstall' subject. We will try to find the reason of the problem.