Are you running as an Administrator or a Standard User? The screenshot that you posted shows that "some settings are managed by the System Administrator" and that's likely to be the problem.
Also, could it be that the file is still in use by Windows? If so, it could give an error (although I don't know if it would be the same error). If it's in use (check Task Manager...Processes tab), then I'd suggest killing the process to see if that helps.
Another possibility is that the program isn't compatible with Windows Vista. In that case, I'd suggest uninstalling it and getting a Vista compatible version.
Thanks for the reply.
I am running on an Administrator account and I have tried right-clicking the "Problem Reporting and Solutions" and clicked "Run as Administrator" but the item is still greyed.
The file is actually Sun's OpenOffice. I already used a startup manager to delete the startup entry so it wasn't running when I visited the "Problem Reporting and Solutions". Anyway, I did a double check on the Task Manager and confirmed it wasn't running.
About compatibility now this one I am not so sure... How do I check for program compatibility? I can use OpenOffice programs with no problems. BTW, I tried uninstalling the program and the blocked item entry is still there...