Oh man flans. I know EXACTLY what you're going through. To this very day I don't know how to fix that VERY problem. You're describing it perfectly but everyone is assuming you haven't done the obvious.
This is what happens to me - I'll give a few examples to explain the fury:
1) Suppose I wish to extract a file using winrar into a folder that hasn't been made yet. Theoretically if you write the path directly while extracting to the directory you wish to extract to, then winrar should just automatically extract, right? Wrong. Access denied? Why? I don't know. Funny thing is, this happens even when you create the folder manaully and repeat this step.
2) Ok, so you've created the folder. Let's try copying and pasting this rar file into the folder, right clicking, then clicking "Extract Here" right? But no. Access is denied.
But don't you worry. You may think I haven't accurately described the problem. There's more frustration in option 3:
3) SURPRISE! Now you CAN extract into the folder. Congratulations! You extracted the file into the folder you want to. Now let's go and check to see if it's there. You go to the directory and check to see if the folder is there. Is it? No. Well maybe it's hidden? Try and view hidden files and is it there? No. Yet if you were to extract the winrar file again, Winrar and its mighty foresight can still see the folder and to top it off, it can successfully extract itself. "Well maybe I'm oblivious so let's run a search on the computer". Nothing turns up. Let's extract into a different new folder... Now this folder is invisible too GGGGRRRRRRRAAAAAAAAHHHHHHHHHH!!!! To top it off, sometimes winrar will just simply say that the system cannot find the file specified.
Flans... I feel your pain more than life itself, ok? I have searched ALL over the internet for a solution to this issue but I just can't seem to find one. It's almost as if windows is treating me like I'm not an administrator or something even though I'm the only user on this computer

. If you happen to find a solution... or if anybody happens to know the answer... Please help.
p.s. I've changed the folder settings so that it is not a read only folder as well. This doesn't help anything.