Unable to install game in a new folder

I am trying to install Silent Hunter 3 on my Win 7 OS. Due to a Starforce protection file, I have to do a workaround installation as described on the Subsim website (URL www.subsim.com/radioroom/showpost.php?p=2192011postcount=3) which requires you to install the DVD game into a different folder than the default Programs(x86).

I created a new folder under Computer - Local Disk (C) - Users - called Silent Hunter 3
When I attempt to install the game into this folder I get an error message stating:
The specified folder: Silent Hunter 3 is invalid, incomplete or write protected. Please select a valid install path.
I also notice that the newly created folder Silent Hunter 3 does not have an arrow to the left of it when viewing the folder tree of Users.
When I check the properties of the folder is has a filled in box in the attributes section indicating that the folder is "read only". Checking further in Google...windows 7 folders cannot be changed from read only, just the files and subfiles.
At this point I don't know how to install the game in a newly created folder...need some help...Thanks

Welcome to the Forums Crusader,

You cannot install the game because it is in the C:\Users area, but if you create a folder in the C:\Program Files (Computer - Local Disk - Program Files) you will be able to install it there. Game saves and mods are saved in the Users area.

Hope this helps you out.