This is an infrequent issue with Server Pack 3. Most users with SP3 using the CD and network versions do not experience this problem.
For some users SP3 restricts files from being run and data being saved into the C:\Program Files directory.
If affected, the solution is to uninstall, then reinstall but instead of agreeing to the default location, choose to install into:
C:\Documents and Settings\All Users\Application Data
Summary of Significant Known Issues: