I have an application written in Delphi 2006 that was working fine in Windows XP. I packed the application using Inno Setup, using Program Files as the default folder. A few
I had a similar enquiry here (Stack Overflow).
In the end I realised that I needed to put my application into Program Files at install time (requiring UAC/elevation) and then store my app's data in the user's App Data folder. I had to change the way my program generated 'default' configuration settings and also where I was saving this stuff, but it was worth the effort in the end - we ended up with something that installs and runs fine on XP, Vista and Windows 7.
The only UAC hit we get is at installation time, which makes sense to me (and you get a similar hit at install-time on the Mac too). We didn't have any data that would be common to all users in this particular case but I would have looked at the Program Data special folder if that had been the case.
The installer software we use (Setup Factory) made this fairly straightforward (we just wrote a small bit of code to detect XP versus Vista/Win7 and choose the right special folder accordingly). It would be easy to do this in Inno Setup too, from what limited experience I have of it.