System Administrator-program installation problem

I am using XP Home Edition
Intel® Celeron® 2.60 GHz Processor
40 GB HDD
256 MB DDR (PC 2100) Saturday my 13 year old downloaded some pics from her digital camera. When she tried to browse them using Paint Shop Pro a box opened up that said "Browse for Folder- Please Choose User Directory" I have never had this question come up before.
I went to Add/Remove programs and there is no option to uninstall it so
I tried to install to program from the disk and the message says "The System Administrator has set policies to prevent this installation." I was logged on as System Administrator already so
I think maybe my daughter must have inadvertantly changed something but how do I get it back to the usual setting. I tried doing system restore but that didn't work. Any ideas as to what happened and how I can get it back to normal?