@khaneagles: If I rename the mod folder of my own copy of BUG 4.4, then the mod still seems to be able to locate the UserSettings folder inside the mod folder; no error messages. I assume that you have the folder in the same place? Maybe it's a permission issue then. You could try changing the access rights or moving the folder to My Games\Beyond the Sword\{modName}. Also seems worth a try to change the modName variable in CvModName.py to HakanMod. As mwonch wrote:
Apparently, most mods/merged components do not require this file to properly reflect the mod being used - this one does. So, if all folders and files other than those changed are the same, this error could possible be caused by the above file containing the wrong mod name.