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gig, I had the same problem you had. Try installing the client in "C:\\users\\|your username|\\FAH" and run install.bat by going into start-accessories-then right click Command Prompt and run as Admin. Then type "cd C:\\users\\|your username|\\FAH" press enter then "install.bat" enter, follow instructions on screen. When that is done create a shortcut of the Client and add the -smp.
After this it should work, this is because Windows 7 doesn't let things run from Program Files without proper permissions, therefore installing it into your User directory bypasses this.
PS: click on accept when UAC asks for permission
Wish they could make it simpler
, oh well hope this helps