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"Access Denied" error whuile launching a Softgrid virtualized application on Vista

I am trying to launch an application on Windows Vista which was virtualized previously for Windows XP. However when I launch the deployed shortcut , Softgrid throws following error -

The Softgrid Client could not launch <Application Name>. Access is Denied. Error Code: 410038-0060922C-80070005

Has anyone experienced this error before?

Error while launching the shortcut 

The events logged on in the SFT Log List are as follows:
SFT Log List Text:
[03/12/2007 15:32:54.862 SWAP INF] {hap=105:app=IrfanView}
Elapsed time for upload: 0.031 seconds

[03/12/2007 15:32:54.877 ???? ERR] {tid=E2C:usr=sgtestadmin}
Unable to CreateProcess (rc 0060922C-80070005)
[03/12/2007 15:32:54.877 SWAP ERR] {hap=105:app=IrfanView}
The client could not launch Q:\Irfan-View_Irfan-Skilijan_3.99_MNT_1.0\i_view32.exe (rc 0060922C-80070005, last error 0).
[03/12/2007 15:32:56.593 TRAY ERR] {tid=EDC:usr=sgtestadmin}
The SoftGrid Client could not launch IrfanView
Access is denied.
Error code: 410038-0060922C-80070005


Please check the OSD file for the UNC path where the application is located and verify if the user has access to the shared path.

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