I have encountered the same behaviour on XP SP3 and the syncdaemon.log contains:
2012-02-17 23:29:51,265 - ubuntuone.SyncDaemon - WARNING - Please don't run the syncdaemon as root.
2012-02-17 23:29:51,280 - ubuntuone.SyncDaemon - INFO - not starting twisted.manhole
which seems to confirm those having trouble after adding administrator rights
I have encountered the same behaviour on XP SP3 and the syncdaemon.log contains:
2012-02-17 23:29:51,265 - ubuntuone. SyncDaemon - WARNING - Please don't run the syncdaemon as root. SyncDaemon - INFO - not starting twisted.manhole
2012-02-17 23:29:51,280 - ubuntuone.
which seems to confirm those having trouble after adding administrator rights