Ya, I had the "what do you want for free" thought, but the problem-solver in me wanted to know what was what 
I researched it a bit and had the guy try several things, none of which worked. I think it comes down to the installer putting things in the "right place" for Window 7 to be happy. It doesn't like any random program writing to files outside of it's (that program's) control.
Thanks for confirming that it wasn't just a fluke for this guy.
Tools for Wizardry(r) 7