GameRager: Did you right click the sw folder and unclick read only then hit apply? And was the apply to subfolders box(or whatever it's called) checked as well?
If so then you should be fine.
In the future though install to c:\games. Most newer OSs have this folder already anyways......it isn't a special folder perse.
I had to select to apply to all sub-folders and files, but yes. As for the missing games folder, when did it start to be included automatically? I installed XP after my computer nearly died, but even when I was on Vista, I don't remember a games folder.
Also, if I wasn't just bitching, I would have made this a question thread and properly marked it as solved. Sorry... it seems to work, though.