Hi,
I don't know but newer versions of Windows does all kind of wierd things with virtual folders etc behind the scene.
I suspect the problem is that you've installed it directly under C: instead of in the Program (x86) folder. I'd try removing it and re-installing where Microsoft thinks is the "right" place.

With that said, on my W7 machine I have it installed in C:\PIC\PBP and it works just fine.

/Henrik.