Bob - That makes sense, albeit sucks.
Nigel - Yes, the new file is under the root directory, outside of Program Files.
(sorry, some adjustments below)
So the conclusion - I'm converting an Access 2000 application under Windows XP to Access 2007 under Windows 7. Under Window XP the users used to be able to run the client version stored in \Program Files from their own PC with the data portion stored on server not under \Program Files even though they don't have Admin authority on their PCs. So Windows 7 gives extra protection to the client version which is the program version.
Wait, I also have a user file tracking all latest user parameters used, also stored in the client system \Program files. This one needs to be moved outside of \Program Files.
Please advise if you have any issues or concerns.