SaveProfileUsingICM
It doesn't help if you spell the function name wrong.

I'm not an expert on this, but for what it's worth:

1) It seems to be trying to delete an old copy
and running into a bug in the software.
Maybe a dummy file of the same name would
satisfy that.

2) Could the ICM file be saved elsewhere and then
just copied into the folder?

3) Presumably you have a 64-bit version of the
software? 32-bit that's 64-bit-unaware might
try to save to System32 and fail. (Against all
common sense, System32 is the 64-bit folder
on Win64.)

4) If you think permissions are the issue you can
"take ownership" of the folder and then give
yourself permission. And/or start the program
with elevated permissions. (right click option)

"net user administrator /active:yes" only makes
the real admin account visible at boot. You would
then need to log in with that account to be a real
admin.
I quickly got fed up with that convoluted nonsense
when I started to work with Win7 and ended up
writing a simple program to *really* free up any
file/folder:
http://www.jsware.net/jsware/nt6fix.php5#restfix

It's free. You're welcome to it. If you're queasy about
3rd-party software look up CACLS and Takeown. Those
are command line options that can do the same thing
my software does -- just with more work. I *think*
the same can be done manually but the restrictions
mess is so convoluted I've never been able to quite
figure that out for certain.

I wonder about permissions if the software used to
work. On the other hand, if you're enabling Windows
Update without carefully checking exactly what each
patch is doing then all bets are off.

It seems very odd that the people writing the software
have no ideas, but that may be a case for a 3rd-party
factor. Those things can be very hard to track down
because they're unexpected by nature. Though I suppose
you could try killing any process related to Adobe, printer,
etc before you do the operation. That wouldn't hurt.

Ron Hardin's idea of Process Explorer (sysinternals.com)
is good in general, though if you're trying to write a
file that doesn't exist it can hardly be locked by another
process.