If you had a teenager son you would keep not only UAC on.......
I'm still learning about this UAC stuff. One option is to go into the Control Panel -> User Accounts and turn it on for each user of your computer that you don't trust and then you can turn UAC off for your own account.

From a Run... box you can also type in secpol.msc to run the Local Security Policy dialog.

Click on Local Policies -> Security Options and go down to:

User Account Control: Behavior of the elevation prompt for administrators in Admin Approval Mode

and change that to

Elevate without prompting.

This will keep the nanny on for IE7 but get rid of the tiresome nag messages when you try to run a program.