Have you tried to re-install SH4 via your online Steam account, and put it in a different directory from there in the Steam manager? It might be easier to go that route.
Your computer might have the UAC turned all the way up, which is User Access (or Account) Control. It protects Windows from you, in theory, but also keeps you from doing what you want with the box. Do you have Windows 8 or 10?
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