You want to develop a Klip and test it, but you don't want to destroy your regular Klipfolio Dashboard settings to complete the testing.
Create a directory on your hard drive where the development work will happen - for this example we'll use C:\dev\Klipfolio Dashboard.
Go to Start Menu->All Programs->Klipfolio Dashboard->Open Klipfolio Dashboard Folder, and copy all of the files and folders in this directory into your development directory. Also copy the Klipfolio Dashboard executable (Klipfolio-Dashboard.exe) from the Klipfolio Dashboard install directory (usually C:\Program Files\Klipfolio Dashboard) into the root of your development directory. C:\dev\Klipfolio Dashboard should now contain Klipfolio-Dashboard.exe, parameters.xml, as well as directories named "languages", "skins", "myklips" and "settings".
Be sure to close Klipfolio Dashboard if it is running, then start it with the command-line parameter "/NOINSTALL":
C:\dev\Klipfolio Dashboard\Klipfolio-Dashboard.exe /NOINSTALL
This will start the dashboard using the profile that is contained in the C:\dev\Klipfolio Dashboard directory. Your original profile will remain intact in its original directory, and can be accessed by closing the "development" profile of Klipfolio Dashboard and then starting the application regularly.