>Have you tried \Users\Public instead?
>
I found again this link http://www.west-wind.com/weblog/posts/2004/Nov/06/Setting-File-or-Directory-permissions-ACE-entries-with-NET-using-CACLSEXE

so I guess we may want to go this route.

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Perhaps I should first try to escalate the problem - it was found by our tester today and I'm wondering how all our prior tests of Windows compatibility passed fine - looks like nobody ever tried to create a standard account and run the app.