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FAT32. The File System used by Win98SE that has no security like NTFS file/user permissions. The lack of FAT32 security may be your answer to a lot of problems with FSX. Mine was a license issue + couldn't install ACCELERATOR pack. Windows 7 offers all the tools to create a FAT32 from available space from your C drive. ControlPanel>>AdminTools>>ComputerManagement>>Storage>>DiskManagement. Right Click on Drive C and click "shrink volume". Set shrink size to just under 32 GIGABYTES. Then format it as FAT32, Reinstall FSX into the FAT32 partition and ENJOY!!!. The install may take almost 2 hours so just let it sit. This (installing into) FAT32 thing will solve so many issues. In NTFS, if security on one file it tries to access - fails or a service FSX needs to run fails THE APP WILL FAIL!!!!
Have you searched the registry using CTRL + F and typing in FSX or Microsoft? This should find all entries. If not, then FSX is not installed properly and you need to uninstall FSX, reboot and re-install. Good luck with it.
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