Windows – Access is denied on User Profile – Windows 7

Have you tried creating a new account and check if the problem occurs there as well?

I've seen a post on TechNet where they suggest it as a possible solution.

An accepted solution there was Startup Repair:

If the issue persists, you can also perform Startup Repair. Since you are now logging on in Windows Vista Operating System, you need to use Windows Vista installation disc. To do this, please take the following steps. Note: Please ensure that the DVD-ROM is the first booting device.

• Please insert the Windows Vista DVD and reboot the computer.
• When we are prompted to press a key to boot from the DVD, please press Enter or the space bar.
• Choose your language settings, and then click Next.
• Click Repair your computer.
• Select the operating system you want to repair, and then click Next.
• On the System Recovery Options menu, click Startup Repair. Startup Repair might prompt you to make choices as it tries to fix the problem, and if necessary, it might restart your computer as it makes repairs.

Another suggestion they made there makes you lave the trouble making files behind (note this was under XP I think):

You need to create another profile for each user, with all the same attributes and privilidges for that user, then go into an admin account (not the account that your changing or the account that your setting up, a different one) then in folder options make sure that "show hidden files and folders" is checked, and "hide protected operating system files" is unchecked. then go to the "C:\Documents and Settings\Old_Username folder" Press and hold down the CTRL key while you click each file and subfolder in this folder, EXCEPT the following files: Ntuser.dat, Ntuser.dat.log, Ntuser.ini. right click and choose copy, go to the C:\Documents and Settings\New_Username folder and right click and choose paste. reboot the computer and then you should be able to log on as the new user

Have a look at KB979281, this should explain what's happening and how to resolve it.

This issue occurs if you back up a library that contains custom folders that are located under your user profile.

To resolve this issue, take one of the following actions:

1. Move the library folder from the user profile path to a location outside the user profile path. For example, move the folder to the C:\MyLibraries folder.

2. Exclude the library from the list of files that Windows Backup backs up. Then include the original location of the content in the library in the backup list.

3. Move the library folder to a location other than the user profile folder. Then, add a link to the moved folder from the library. Make sure that the library is included in the backup.