Yes, this very much looks like a permissions issue. The account that the monitoring service runs as needs full rights (create/read/write/delete) for:
C:\Program Files (x86)\PA Server Monitor\
\Logs
\Databases
\Configuration
\Reports
\Install
\MIBs
Oh, and for PA File Sight and PA Storage Monitor this holds true as well, except the top folders are respectively:
C:\Program Files (x86)\PA File Sight\
C:\Program Files (x86)\PA Storage Monitor\