Thank you for getting back to me.
The health monitoring is only capable of writing log application related logs to files located in the root of the application. In that sense if the Sitefinity website is added under Httdocs the website will not have access to files under Uploads. This is so because paths to event logs are resolved using application relative links - the location must be within the scope of the application.
This restriction is not coming from Sitefinity. We inherit from WebEventProvider
which comes from .NET framework. We are using the App_Data directory - this folder is used by ASP.NET to contain application data files including .mdf database files, XML files, and other data store files. Due to its nature this folder is protected by ASP.NET and navigation to this folder is forbidden. Data files in this folder can be accessed only through code, so if your concern is form security point of view - it is safe to allow that the App_Data folder to be writable.
I any case you would have to provide write permissions to the App_Data folder if you intend on using the search functionality - indexes are stored as physical files in the same directory.
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