User Access Control (UAC) is causes problems when installing the User-ID agent with UAC enabled.
Resolution
To disable User Access Control:
Open Control Panel and enter UAC in the search box.
Click the “Turn User Account Control (UAC) on or off” link.
On the next screen, uncheck the box for “Use User Account Control and click OK.
Install the User-ID agent.
To address the permissions issue, (sample error below), run the PanAgentController as administrator.
To run PanAgentController as Administrator:
Go to the install directory for the pan agent (c:\program files\paloaltonetworks\panagent)
Right click on PanAgentController.
Either select "run as administrator" or go to properties and select "compatibility" tab, then select "run this program as administrator," then click OK (this selection will be persistent).