Seemless Install Failing (.htaccess)

I created a seamless install for an application:

Register Free to see it http://englishfreeonline.com/download-i-immersion/

It works perfectly when you I allow installs for anyone. When I change permission to only allow installs to registered users, the application cannot be found. (Permission is dictated by .htaccess)

Does seamless install communicate to adobe and then adobe tries to access the application?
This would explain why seamless install cannot find the file. It is not a user.

Anyone have any ideas?