(almost as if its copying the file locally before running it!).
I'm pretty sure it does actually. How else can it execute it on a local machine...
Also i notice ZIP file access is very very slow.
This is supposedly fixed in SP1. In the meantime, use something actually useful, like WinRAR.
The other problem im having is IE7, it crashes (locks up) constantly.
I have troubles with the 64bit version, but never had any problems at all with 32bit Vista's IE7... also it's really picky with programs that install plugins... be sure you have the LATEST Flash Player and switch off anything unrelated to IE7.