Hi Sid,
Here are some thoughts that occurred to me as I read your post.
Where have you installed BIAB. Is it in C:\Program Files" by any chance? If it is, this is not a good location for the program.
Also, it would be worthwhile right-clicking on the shortcut and then choose "Run as administrator" when you start it to see if that makes a difference.
Lastly... Go to \bb\Prefences and rename intrface.bbw to intrface.bbw.old and MySetup.DK to MySetup.DK.old ... Doing this forces BIAB to create new versions of these start-up files. If that doesn't solve the problem, you can always go to \bb\Preferences and delete the new versions of these files and return to the old versions by removing the .old from the extension.
Regards,
--Noel