--- VirtualBox-4.0.2_OSE/src/VBox/Main/src-server/SystemPropertiesImpl.cpp
+++ VirtualBox-4.0.2_OSE/src/VBox/Main/src-server/SystemPropertiesImpl.cpp
@@ -1035,7 +1035,8 @@
         // new default with VirtualBox 4.0: "$HOME/VirtualBox VMs"
         HRESULT rc = getUserHomeDirectory(path);
         if (FAILED(rc)) return rc;
-        path += RTPATH_SLASH_STR "VirtualBox VMs";
+        path += RTPATH_SLASH_STR ".VirtualBox";
+        path += RTPATH_SLASH_STR "Machines";
     }
 
     if (!RTPathStartsWithRoot(path.c_str()))