Setting Windows PowerShell environment variables

[kevinpowel668]

I have found out that setting the PATH environment variable affects only the old command prompt. PowerShell seems to have different environment settings. How do I change the environment variables for PowerShell (v1)?

Note:

I want to make my changes permanent, so I don't have to set it every time I run PowerShell. Does PowerShell have a profile file? Something like Bash profile on Unix?