Thanks A[L]C that's too bad
The only thing I can suggest now if your up to it is enter the info from the reg file to your registry by clicking on it, reboot and try again?

I was told that those two key values could be added to any registry without creating any problems so you need not worry here.
If the app still cannot lock a file or folder you can change those values back or delete them altogether.

Thanks again for your help!