@ Coder:
Note: acad has some "special" filenames it searches for. If it finds such file(s) it loads them automatically. ........ things like acad.lin
Correct me if I'm wrong, but AutoCAD does not search for "acad.lin" at any time except when you run the Linetype command, Load option, and even then it's only a suggested file from which to load linetype definitions.
My point is that you can have multiple acad.lin files (or none at all) and it has no effect on the operation of AutoCAD with respect to linetypes in drawings that you open, because linetypes used by drawings are stored in the drawing file, not in external files. Having said that, complex linetypes in drawing files that reference shapes or fonts do require that those shapes or fonts reside in a path that is in the current SFSP, or possibly contain a hard-coded path to the shape/font.
I know this is a bit off-topic, but I thought it was worth mentioning. Thanks!