Let's be clear - the program runs just fine.
As for permissions - I had to add my domain id and I have to run it as that, because Matlab checks permissions on a remote license server, and it need to be started up as me to do that. It won't run as localadmin.
Could it be that? the tip for Shell execute notes that you only have to check it if one isn't using credentials, implying to me that if you are, it automatically does a shell execute, in which case, that would be our problem?