Can I see the reason for User Account Control dialog appearing?
When starting Pencil, the UAC dialog appears. I don't see a reason why the program should need elevated privileges. Is there a way to see why the UAC dialog was launched?
Have you reviewed the UAC event log? (Computer Management, Event Viewer, Applications and Services Logs, Microsoft, Windows, UAC, Operational)
You might try turning on UAC Auditing.