Security Code Snafu

Question

CodeAccessPermission	fiop	=	new	FileIOPermission(PermissionState.Unrestricted);
CodeAccessPermission	ep	=	new	EnvironmentPermission     (EnvironmentPermissionAccess.Read, "USERNAME"));
CodeAccessPermission	fdp	=	new	FileDialogPermission(FileDialogPermissionAccess.Open));
CodeAccessPermission	isfp	=	new	IsolatedStorageFilePermission(PermissionState.Unrestricted));
CodeAccessPermission	rp	=	new	ReflectionPermission(ReflectionPermissionFlag.MemberAccess));
CodeAccessPermission	uip	=	new	UIPermission(UIPermissionWindow.SafeTopLevelWindows));
CodeAccessPermission	pp	=	new	PrintingPermission(PrintingPermissionLevel.SafePrinting));

Console.WriteLine(fiop.GetType().ToString()	+ ": " +	SecurityManager.IsGranted(fiop));
Console.WriteLine(ep.GetType().ToString()	+ ": " +	SecurityManager.IsGranted(ep));
Console.WriteLine(fdp.GetType().ToString()	+ ": " +	SecurityManager.IsGranted(fdp));
Console.WriteLine(isfp.GetType().ToString()	+ ": " +	SecurityManager.IsGranted(isfp));
Console.WriteLine(rp.GetType().ToString()	+ ": " +	SecurityManager.IsGranted(rp));
Console.WriteLine(uip.GetType().ToString()	+ ": " +	SecurityManager.IsGranted(uip));
Console.WriteLine(pp.GetType().ToString()	+ ": " +	SecurityManager.IsGranted(pp));

 
If the above code is ran from a command prompt from C:\ and with administrator privileges, it produces 'true' to all permissions (C:\Permissions.exe) since My_Computer_Zone (C:\) has the Full Trust permission set.
If the above code is ran from a command prompt through a loopback with administrator privileges, it should NOT produce 'true' for several permissions (\\127.0.0.1\C$\Permissions.exe). Permissions.exe is now running from a shared folder and hence under the Internet Zone. Specifically IsolatedStorageFilePermission. Yet in my case it does!
.NET Configuration Tool shows everything as normal. Zones and their respective trusts are as follows. My Computer: Full Trust; Local Intranet: Medium Trust; Internet: Low Trust; Trusted Sites: Low Trust; Untrusted Sites: No Trust.
Runtime Security Policy –> Machine –> Code Groups –> All_Code –> Internet_Zone –> Internet_Same_Site_Access also reset to normal settings.
I'm baffled! Any help is welcomed.
* Code, although modified, is courtesy of Tony Northrup's book "Microsoft .NET Framework – Application Development Foundation".