Hi Lee,
Cathal Connolly has been providing assistance. So far, it is not a permissions error as I can create files via the Host > Files interface. I can add and delete module (Module Definitions) to my heart's content. My users can add data to their sites, create new pages and so forth. Still working on this and hopefully it will be fixed soon!

As a quasi-backup, every time I upgrade my DNN installation, I create a new folder labeled with whatever version of DNN I am upgrading to and "point" IIS to that new directory as the home directory. I use a virtual server for my DNN database and make snapshots of the virtual server before doing any upgrades as well.
I can regress to earlier versions of both but my faculty will kill me if the files they have added to their sites since the upgrade disappear. Haven't figured out how to move child portal data between installations yet.