Yes...that looks like it...it's obviously been updated to XP, etc...
If you restrict system access to a system file...something required by Windows...then you will have problems...
Documentation should stress [somewhere] to be careful what you hid/protect/restrict....
http://www.applianmobile.com/pc/pocketlock/docs/pocketlock.htm
That appears to have a '.lock' suffix.
Good luck....