Posted on WOW forums too and guy told me I should have a look at this...
http://www.blogsdna.com/2159/how-to-...-windows-7.htm
Something about taking ownership of folders, either way that did not work.
But thankfully the idea of moving the folder to somewhere outside of program files did the trick, thanks bunches people. Lots of headaches resolved, now I can continue sucking with my shadow priest.