I am using docker toolbox on Windows 7 to run docker. (docker version 1.9.1)
As it turns out, the docker machine creates its VM at C:\\Users\\username\\.docker\\mach
I could not get the MACHINE_STORAGE_PATH environment variable method working. It kept complaining about missing certificates when first initialising the machine. Still on Windows 7 so have to use docker-toolbox.
I got around the issue by: