Oh. Found out why.
I had a problem with MG at a point in time and deleted the megaglest folder in %appdata%.
Later i changed my UAC to always ask for when programs need folder access.
when i created the folder "megaglest" the game started fine.
Going to test now.
Alright, Chaning UAC settings seemed to have no effect, neither did running as administrator.
(i remember this as working in the past). Does Megaglest no longer create a megaglest folder in the %appdata% folder if it isn't there at game startup?.
in effect, If you don't remove the MG folder in there (%appdata%). Normal installations should be fine.
Isn't it a common advice in here to delete it tho?.
So in short is it a bug that the game does not create a folder if the folder is missing on startup?.