Using aqFileSystem.Exists("Path") - TestComplete cannot find C:\Windows\System32\config\systemprofile\AppData\Roaming\folder1

Under Win7 the UAC will prevent this even if the permissions are ok. A lot of antivirus packages will do the same. No one should be writing anything in System32. If you absolutely need to do it, you need to do it within an elevated context, in a .Net application.