I have a server with multiple instances (MSDE and SQL Express). I run the same exact code on both and the correct value for BackupDirectory came back as if it was read from the true instance directory.

I'd have to retest this to verify my observation about the xp_instance_regread. I recall thinking that the key specified in the xp_instance_regread procedure call didn't necessarily exist verbatim in the registry.

Caine