How to correctly use WixAppFolder for install without UAC?

Question

Hello.

I have created a minimal installer with "WixAppFolder" set to "WixPerUserFolder". Application installs in HOME\AppData\Local\Apps\APPNAME as expected, but installer shows same UAC prompt for both per-user and per-machine install (under normal user this prompt has 'enter administrator password'). I'm using Windows 7 Ultimate 64-bit. The installer GUI for "Install just for you" says thet "you do not need local administrator privileges'. But it is not true - local administrator priviliges are required. What i'm doing wrong? Installer source code:

<?xml version="1.0" encoding="UTF-8"?>
<Wix xmlns="http://schemas.microsoft.com/wix/2006/wi"&gt;
  <Product Id="*" Name="Test" Language="1033" Version="1.0.0"
           Manufacturer="Me"
           UpgradeCode="bb39686c-d77a-4bc4-bbd8-f13b1e0ec26c">
  <Package InstallerVersion="200" Compressed="yes" />
  <Media Id="1" Cabinet="media1.cab" EmbedCab="yes" />
    <UIRef Id="WixUI_Advanced" />
    <Property Id="ApplicationFolderName" Value="test_app" />
    <Property Id="WixAppFolder" Value="WixPerUserFolder" />
  <Directory Id="TARGETDIR" Name="SourceDir">
   <Directory Id="ProgramFilesFolder">
        <Directory Id="APPLICATIONFOLDER" Name="test_app">
          <Component Id="c_test" Guid='*'>
            <File Id='test_txt' Name="test.txt" />
          </Component>
        </Directory>
   </Directory>
  </Directory>
    <Feature Id='f_test' Title="Test" Level='1' >
      <ComponentRef Id='c_test' />
    </Feature>
  </Product>
</Wix>