I've just been wrestling with a very similar problem, and finally solved it, so here's my two-penn'orth . . .
My USB key had been running TOTALLOCK fine for months on both my PC and laptop. But is stopped on my laptop, with the message about "You are not privileged user on this systems . . .". But I am a domain admin with Admin rights on the laptop. After trying everything suggested, I started looking at mount points (MOUNTVOL.EXE) - on the PC, mount points for E: and F: appeared & disappeared depending on whether the key was in or not; but on the laptop it only added/removed E:. So then I looked at My Computer/Manage/Disk Management on the laptop - I saw that there was a TotalLock partition with E: and another removable-media partition without a drive letter. I assigned it F: and everything started working OK. On to the next support problem . . .
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