I think the key is the UAC prompt. My security settings may be allowing the second instance to run with the UAC prompt. Your settings may be prohibiting it completely. You might try running the second instance as administrator. Either that, or loosen up your UAC security settings.
My guess is that the second instance wants to open the same log file as the first instance and that causes the UAC prompt. Next time I do it, I'll have to check my SGP log to see if it is all screwy. I'll bet it is.
Tim