trouble creating a tablespace on win2k8r2 with pg9.0

Hi Everybody,
I am experimenting with Postgres 9.0 64bit on windows 2008 R2 server (64bit).
I am having trouble creating a tablespace, I have a very strong suspicion that my problems are windows specific, but I ran out of ideas of what else to try.

I create a folder under the PostgreSQL\data folder to be used for the tablespace
I go to pgADMIN III or psql and try to create the tablespace using the precreated folder, in both cases I get some version of this:

postgres=# CREATE TABLESPACE kasia OWNER bill LOCATION 'C:/Program Files/PostgreSQL/9.0/data/kasia';

ERROR: could not set permissions on directory "C:/Program Files/PostgreSQL/9.0/

data/kasia": Permission denied

Privileges on the folder:

- Postgres user has full control

- Admin users have full control

I have tried to following:

- Turn off UNC

- Make the whole PostgreSQL folder writable

- Grant explicit privileges to my os user (part of admin group) on the precreated folder

So far I am unsuccessful, I tried this on another win2k8 r2 machine and granting explicit privileges to my os user worked, so there is some difference between the machines in security settings but I am just not able to determine them.

Has anyone else ran in to this issue?

Thanks,
Sincerely,
Kasia