Scenario
I am currently looking at a security issue with the installer of my app. Even though the full context is probably irrelevant for my question here is what I am trying to do: https://skanthak.homepage.t-online.de/!execute.html
Problem
I do have a CMD with elevated privileges and am impersonated as SYSTEM which I did using PsExec from the Sysinternals suite (see this).
The current folder is a new and empty folder inside my user folder.
When I execute
mklink /h version.dll C:\Windows\System32\version.dll
I get "Access Denied".
I have granted the "create symbolic links" permission to my user, system and administrators as described in an answer here.
I have removed write protection from the windows folder and all its subfolders as far as possible using an elevated explorer (Especially the version.dll is NOT write protected)
I am doing all this in a virtual machine hosted in HyperV. The virtual OS is Windows 7 Professional SP1.
Question
Why is the command failing with ACCESS DENIED?