System.Data.SQLite.SQLiteException Attempt to write a read-only database on Windows 8

I developed an applicaiton that works fine <= Windows 7. It uses SQLlite database with VB and C#. However on Windows 8 (Never had this specific problem on other windows os) there is an issue when trying to write to database

System.Data.SQLite.SQLiteException: Attempt to write a read-only database

I created database file on windows 8 pc like:

 Try
     If (Not File.Exists(System.Environment.CurrentDirectory & "\MY_DB.db")) Then
                Dim conn = New SQLite.SQLiteConnection("Version=3;New=True;Compress=False;Read Only=False;Data Source=" & System.Environment.CurrentDirectory & "\MY_DB.db")
                conn.Open()
                '...DO STUFF  
                conn.Close()
                conn.Dispose()
                conn = Nothing
     End If

 Catch ex As Exception
            'Throw ex
            Return False
 End Try

But didn't work.

So basically I have tried:

1. Added Read Only=False when creating db file but didn't work.
2. The folder the database resides in must have write permissions, as well as the actual database file. So did it, didn't work (on windows 7 would look like ).

What can I do to make databse writable ?