there isnt anything like that in the application.cfm just the
<cfapplication name="xxxxxx" sessionmanagement="yes" setclientcookies="yes" sessiontimeout=#CreateTimeSpan(0,0,45,0)# />
everything else is about datasources, titles etc.
The thing is that the above code used to work for coldfusion 7 and comparing the two admins the only difference I can see is that under Server Settings > Client Variables where you select default storage mechanism for Client Storage on coldfusion 10 it is set to Cookie but on coldfusion 7 it is set to Registry. Could that be part of the problem as well?