Since running Office Tools Professional on Windows 7 utilizes a Virtual Windows XP Environment ( as described in the 'Document Management on Windows 7' article ), you must assign the drop folder differently than you would normally.

Since your Windows 7 desktop and your Windows XP Compatibility Mode desktop are two completely different locations, you will need to find the location of your Windows 7 Drop Folder from within your Windows XP environment (dont worry, this is very easy).

First, find out the name of your Windows 7 computer by right-clicking the 'Computer' icon on the start menu, selecting 'Properties', and noting what is says under 'Computer Name'.  create the Drop Folder on your Windows 7 Desktop. Then open Office Tools Professional, and go to Setup -> Documents -> Drop Folder and click the ellipsis (...).

Then under 'My Computer' find the area where it says 'C on Windows 7 machine' (where 'Windows 7 Machine' is the name of your computer). From there navigate to 'Users -> My Profile -> Desktop -> Drop Folder' (where 'My Profile' is your windows login name). Once you select the Drop Folder, click Ok to save your settings. Once you restart your Event Manager, you should be ready to use the Drop Folder on your Windows 7 based computer!