Local Group Policy Settings
In Windows 7 you can configure Application Compatibility Diagnostic policies that define how Windows responds to compatibility issues. These policies are found in the Computer Configuration\Administrative Templates\System\Troubleshooting and Diagnostics\Application Compatibility Diagnostic. In a network setup with domain controllers you would edit the Domain Group Policy but for a single computer system edit the Local Group Policy by typing gpedit.msc in the Start search text box.
In the Local Group Policy Editor, expand the Computer Configuration node, then Administrative Templates, System, Troubleshooting and Diagnostics, and finally the Application Compatibility Diagnostic node:
UAC is a Windows 7 in-built tool that protects your system. It alerts you when you are executing some task that requires administrator privileges! For example, if you open a word document and a UAC prompt is displayed, then the document may be some sort of malware as it is requesting administrative privileges when in fact it should not!
UAC runs only with user accounts that have administrator privileges while it does not affect normal users. Normal users without admin rights are by default blocked from running elevated tasks. Do not get mislead by this statement, as there are applications that run with elevated permissions even when normal users are logged on. Therefore, UAC is a security-warning tool that makes you aware of the potential risks.