Earlier quoted context omitted.
Which was caused in part by badly behaving programs (writing user data to the Program Files directory) that triggered the UAC prompt, if I'm not mistaken.
They improved the system in the next release, and since Win7 UAC generally works perfectly even with the "badly behaving" software. Sensitive directories are now mirrored elsewhere in the filesystem, so that when your program wants to read from, say, Program Files directly, what it really reads is C:/Users/[username]/AppData/Local/VirtualStore/...
f = open('C:/windows/test.txt')
try:
f.write('test')
except Exception as ex: print ex
IOError: [Errno 13] Permission denied: 'C:/windows'