Just ran into this issue, and accidentally solved it while fixing another issue! I also am running Windows 7.

Background
I used to only have one major user account on this desktop, but I had to create a second one recently. BioImage Suite still opens just fine in the old account, but I would run into the error you have with the new account. I tried uninstalling and reinstalling from the new account, but that did not fix things. I also tried giving all possible permissions to my account and making sure I had administrative access etc.

Solution
When trying to fix a completely separate issue for Git, I went to the Windows Start Menu, typed in "Environment Variables" and clicked on "Edit environment variables for your account". In "User variables for [username]", I added a new variable called "HOME" with the value "C:\Users\[you_username_here]". This seemed to magically fix things for me.