Such a tocuhy subject and only four of us decided to reply... hmmm?
Here's the thing though, I think the choices need to be refined or calrfied. As far as e-mail and personal documents, the admin has absolutely no need to see/read/or otherwise manipulate them. However, the admin should have access to anything program or system related. I think the distinction in terms of privacy has to be data versus application. User created data (in terms of pure information, a non-working program under this scheme would not constitute data), in any form, should not be accessible by anyone but the creator.