I am using an administrator account. Also I asked to run flac as administrator...
BTW, since you are familiar with foobar2000 why not use it to accomplish this? Just drop your wave file on the playlist, right-click and select "Convert" > "..." Configure the conversion properties as you see fit.
Are either of the directories in which you have installed the FLAC executable on the system PATH?
If you are still having problems you might try temporarily renaming your file to something simple like "martius.wav". Move the 32-bit version of flac.exe and the file above into the same folder and open a CMD window there. Type:flac martius.wav