"niemiro" wrote in message
...

If it *CAN*, then when does it? I am completely confused now!

Vista (and I assume Windows 7) is designed to activate the Administrator
account in safe mode if the last administrator level account is demoted
or removed. This was done so that an accidental demotion of the only
admin account still gives the user a way back in.

If you want security for your data even when the "attacker" has physical
access to your machine, you need to encrypt and manage the key properly.
Vista has support for TPM, which can safeguard your encryption key in
hardware so that if the attacker uses an alternate boot the key is not
released.