How can I change download/install directory?

Use "MKLINK /D link target"command to link a directory to another location. In a command prompt opened as administrator. This is native to Windows stuff.

Use it for almost anything.

Two changes i made: launcher seems to duplicate and patch a copy of engine (4.7 preview is sitting at 20GB for me) before replacing it. And VaultCache (store content) is just fine on my HDD instead of my small C-drive/SSD.

    cd \Program Files\Epic Games\Launcher
    (First move PatchStaging and VaultCache to other drive, root of E:\ for me with Windows Explorer)
    mklink /d PatchStaging E:\PatchStaging
    mklink /d VaultCache E:\VaultCache
    
     Directory of C:\Program Files\Epic Games\Launcher
    
02/02/2015  07:24 PM    <DIR>          Backup
12/11/2014  01:19 AM    <DIR>          Engine
02/12/2015  07:28 PM    <SYMLINKD>     PatchStaging [E:\PatchStaging]
01/07/2015  02:31 AM    <SYMLINKD>     VaultCache [E:\VaultCache]

Make sure the /d is there and it says SYMLINKD.

This works fine with 4.6, 4.7 engine folders. This works fine with Unreal Projects folder in your Documents folder.

edit: updated Launcher Troubleshooting guide: Tips and Tricks