Just faced this problem in a client's Windows 7 PC. Found this wonderful solution on http://answers.microsoft.com/en-us/windows/forum/windows_vista-security/error-0x80070522-a-required-privilege-is-not-held/78cc11ec-c543-418d-9183-131318e9db8a. (I am so tired of all the weird new implementations in Windows 7... T.T)
This issue might occur permissions are not set properly for the C Drive.
Make sure that you are logged in as Administrator.
To take ownership of C Drive, follow these steps:
1. Right-click the C Drive and then click Properties.
2. Click the Security tab.
3. Click Advanced, and then click the Owner tab.
4. In the Name list, click your user name, or click Administrator if you are logged in as Administrator, or click the Administrators group.
5. Click on Edit and then put a check mark against "Replace all existing inheritable permissions on all descendants with inheritable permissions from this object".
6. Click OK, and then click Yes when you receive the following message:
This will replace explicitly defined permissions on all descendants of this object with inheritable permissions from C-Drive (C:).
Do you wish to continue?
7. Once the permissions are replaced, click on Ok.
8. Check if you are able to copy, paste or delete any documents now.
OR you can try the steps below
If the above steps fail then you may also want to disable UAC and check if that helps.
1. Click Start, type msconfig in the start search box, and then press Enter.
If you are prompted for an administrator password or for a confirmation, type the password, or click Continue.
2. Click the Tools tab.
3. Click Disable UAC and then click Launch.
4. A command window appears, and shortly thereafter, a notification bubble appears informing you that UAC is disabled.
5. Click Ok and restart your computer to apply the change.
