Try reinstalling, but when you run the installer choose "Run as Administrator". Also when you launch LoR use a shortcut to do so and choose "Run as Administrator" when you launch it.
If that does not work, find the BtS folder in your computers MyDocuments path usually the path is something like this:
C:\Users\CompName\My Documents\Beyond the Sword
In that folder create a folder named LoR, and in the new LoR folder create a folder named UserSettings
That should solve the problem. I tried to make the installer handle certain users' prefences so that BUG (the BUG mod is what this mod is built around) can find it's user settings and use those files, but Windows 7 security protocols sometimes blocks it anyway.