The Devs spent time making sure that LFS worked with Windows Vista ME (Vista is the new Windows ME) a couple of patches ago. As far as I know all issues were resolved at the time.
That said, there is NOTHING the devs can do about the current dire state of the Vista drivers for most hardware at the moment.
I've got Vista RC1 on my laptop and LFS runs fine (apart from some server connection problems which i've had on XP as well, so I don't think these are Vista specific problems).
but i still need to find my mpr and spr files i saved ingame... (yeah checked mpr and spr folders who weren't even created searched the whole hdd...) i think its a vista prob, but :
vista home premium here, LFS runs fine, no problem, fresh reinstall, looking better than ever
Just disable the account security option so it doesn't ask you 3 times to confirm if you want to create a new folder on your C: drive.
That might help the save replays issue, it doesn't like programs saving files to disk unless they have a note from Uncle Bill.
It's really simple - theres a little button you can click. Default is on.
The Windows Vista security centre has more info. You can turn on/off firewall, anti-spam, antivirus, internet security, user account security, each has a little button next to them. (Hint: Green - on, Red = off)