MSi installation Error

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I have created MSI using Wix. When I am trying to install it, I am getting the below error. "The installer has insufficient privileges to access this directory c:\windows\AppTest. The installation can not continue log on as administrator or contact your system administrator". I went through some of similar post but it did not helped me.I have admin rights and UAC is turned on.
Below is my code:

<wix xmlns="http://schemas.microsoft.com/wix/2006/wi">
<product name="AppTest" id="*" enter="" code="" mode="hold"> UpgradeCode='{05E35D34-E7F6-4CED-BF86-B1747AE92E07}'
Language='1033' Codepage='1252'
Version='2.0.0.1'
Manufacturer='LabView Inc' >

<package id="*">
Languages='1033'
SummaryCodepage='1252'
AdminImage='no'
InstallerVersion='200'
InstallPrivileges='elevated'
Compressed='yes'
ReadOnly='yes'
ShortNames='yes'
Comments='AppTest Installer Package'
Description='AppTest Installer Package'
Manufacturer='LabView Inc' />

<media id="1" cabinet="AppTest.cab" embedcab="yes">
<directory id="TARGETDIR" name="SourceDir">
<directory id="WindowsFolder">
<directory id="APPLICATIONROOTDIRECTORY" name="AppTest">



<directoryref id="TARGETDIR">
<component id="AppTest.dll" guid="3947344C-8116-48FB-9F8A-080EA7D1ABAD">
<file id="AppTest.dll" source="$(sys.CURRENTDIR)files\AppTest.dll" keypath="yes" checksum="yes">
<file id="msvcp80.dll" source="$(sys.CURRENTDIR)files\msvcp80.dll">
<file id="atl80.dll" source="$(sys.CURRENTDIR)files\atl80.dll">
<file id="msvcr80.dll" source="$(sys.CURRENTDIR)files\msvcr80.dll">
<file id="Microsoft.VC80.ATL.manifes" source="$(sys.CURRENTDIR)files\Microsoft.VC80.ATL.manifest">
<file id="Microsoft.VC80.CRT.manifest" source="$(sys.CURRENTDIR)files\Microsoft.VC80.CRT.manifest">
<file id="AppTest.inf" readonly="yes" source="$(sys.CURRENTDIR)files\AppTest.inf">


<feature id="AppTestFeature" title="AppTest" level="1">
<componentref id="AppTest.dll">