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I've tried changing privileges for a user and I'm not seeing that they get reflected in real-time while an application is running. Maybe I'm not doing it right, but I'm not seeing it. I'm also not able to find anything about that being supported or anyone else trying this...actually, there's very little privilege related info anywhere outside of "these are the available privileges".
I'll spend a little more time and see if I can channel any sysadmin types to see if they know anything about this. It's looking like we'll just have to try enabling on module loading and if it works, great, otherwise there's no os.symlink for the lifetime of the interpreter.
Attached is a patch that works safely on XP/Server 2003 where there is no symlink possibility. It still has that test_tarfile error which I'll get to next.