You can make UE portable (I tried v11+) by just moving the ini-file into the application directory. It always looks in the appdir for an ini-file.
The only problem is that relative paths (eg Language File=.\wordfile.txt) set in the ini-file are relative to the project-dir or the current working dir. Very inconvenient if you want to invoke your portable UE from another app, eg Total Commander.
An example: You browse to "C:" in TC, select a textfile and press F4 (invoke text editor, by default Notepad, but you can specify a custom texteditor, in this case I specified UE). TC invokes the portable UE and passes the name of the textfile as parameter. The problem is the current working dir becomes "C:" and UE searches for the wordfile in "C:".
To workaround, use a batchfile to invoke UE from other programs. Create a file called "startue.bat" in the UE-directory. Put the following command in the batchfile:
start /b /d%~dp0 %~dp0uedit32.exe %*
NOTE: Doesn't work under Win9x, only Win2k and higher.