kislam: Thanks for the feedback. I've updated the ReadMe to try to make this clearer. I see what you mean about the confusion with the open directory button. Originally all profile information was only available in the Mining Profiles window, but I then went back and wanted to at least display it on the Settings tab. But I made them read-only to try to direct users to manage profile settings all in one place. I provided the buttons to make it quicker to do things like edit the profile's config file or bat/cmd file, not the profile itself. To do that, you have to use the 'Manage Profiles...' button which takes you to the Mining Profiles window.
Whichever profile you set to active in the Settings tab is the one that will be used. The only time it won't be used immediately is if the miner is running from the previous profile and you have chosen not to restart it when CGWatcher asked you. So the only time you have to worry about the current mining profile is if you switched profiles while the miner was running and didn't restart the miner. Otherwise, the current mining profile and the active profile will always be the same. The active profile is the one you select and is saved when you click 'Save Settings'. This profile is used when CGWatcher starts, or when it starts or restarts the miner.
The Default profile is just a name given to the first profile it creates automatically for users that do not have any profiles yet. You can change the name of it. You can then name another profile Default if you wanted to. I just had to name it something.
Thanks for the explanation. I just have a very simple suggestion -- you have a button on the 'Pools' tab that says 'Switch to this Pool'. Similarly, you can add a button on the 'Settings' tab that says 'Switch to this Profile' which will switch to the selected profile and will automatically restart the miner if necessary (i.e. when switching from sha to scrypt). I think this will make profiles section a lot more intuitive. Also, it might be better to have a separate tab for 'Profile' section.