Fresh Upgrade to Filr 1.1 large deployment, no clusters and only one of each VA. Did not yet upgrade SQL VA. VMware ESXi 5

I get the following message when I try to get a file link with the new desktop client in Windows 7: "You do not have sufficient permissions to perform this action."

I get this error when I try it from our Filr site: "You do not have right to share your selection."

I even gave all internal users all the sharing rights. I did all the prescribed post update tasks, LDAP, re-index etc. Other sharing methods work fine.

Any ideas?