I've been running Windows 7/64 for a couple of years or so. Never had this problem before.
I went into Windows Explorer and cleared the read only box for this folder and hit continue after the access denied msg. I restarted WE in admin mode and still can't clear the read only box.
I ended up going into my wife's account (which showed full access!) and changed my permissions there. I'm not sure how they got changed to read only in the first place.
I admit my security-fu is weak and I need to read up on how to better manage permissions.
Does this sound like a work-around to a problem that shouldn't have existed in the first place? Now I wonder what other security issues my user account may be missing.