I have discovered part of the problem.
I went in to the service controller and found the the tcadmin service that executes the game and changed the user permissions to Administrator (from System) and it works! However this is not ideal for obvious reasons. I tried to create a new user with permissions (even tested admin permissions) and nothing. It seems after a while this game will ONLY work if executed as Administrator. My guess is it's doing something to the OS that requires Administrator permissions like writing cache files or something, but I don't know exactly what.
I have looked everywhere, registry, files, etc. and I cannot find anything that may be stopping this from working with the normal System permissions.
If anyone can find a way for this to work without using the Administrator login to execute the service I would very interested to know.