Civ 4 needs to run with administrator rights. With Win 7 that usually means installing and patching by right-clicking on the .exe and choosing run as administrator and running on an administrator account.
I run using an administrator account so don't have the issue of it asking for my administrator password.
I also don't use Buffy so can't help there although the issues may be related to not running on an administrator account.
You could try installing it to a non-standard location rather than letting it go into program files.
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