Here is what I did to make it work - I saw this somewhere else: I added another user with admin priviliges. Then I deleted the old user. The new user has a working aero peek. Can anyone explain why this worked, as it is totally baffling to me.
BTW Frostmourne - This is a brand new system and I downloaded all new
drivers, chipset drivers, bios's, and also, the Aero peek worked on my Windows 7-
x86 system (which is the same computer, just loaded on another HDD).