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Not sure anyone has run into this weird set of issues with the BDE running on Windows 7, but I have seen it too many times.
Either trying to show network drives in 'Select Directory' or having the BDE seeming to 'freeze' on saving the configuration.
The network drives were accessible through windows explorer.
One client claimed his path had changed by itself after reloading the BDE. He said the path change did save successfully beforehand.
I had to delete the Alias entry and re-establish the path from scratch.
I find running the BDE under a Win xp virtual machine far more reliable.