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They never really work on W7. That is a known issue and hinges on the security stuff. I keep forgetting these things, but somewhere I read some tips that get at least a part of them working, so maybe spend a few minutes consulting the mighty Google or whatever...
I was hoping for a better reply to the droplet issue. I also have W7 and Photoshop CS4 and cannot get a droplet to work. My actions work properly, but when I use a droplet, the only thing that happens is the Photoshop button blinks on the W7 bottom toolbar.
I am also not finding much out there about solutions to this issue on Adobe's site and Google.
Please post something here or link to another thread if someone has found a solution to this issue.
i have tried thjat method and the rename pref folde /create new user,reboot and both do not work i wish adobe would chime in on this issue. if cs5 is the same i will not buy it.
I realized that a few steps were missing from the full process. Check the posting out here: http://forums.adobe.com/message/2809878#2809878 and try the steps again for your droplets.
It seems to be more of a Windows 7 issue than Adobe, but there should not be and issue to begin with between the OS and Photoshop.