If you’re reading this you probably know that for some unknown reason Web Folders has never worked in 64 bit Vista. Well, whatever the problem is with Vista it appears to have been fixed in Windows 7. In our testing all of the Web Folders functionality works essentially the way it did in Windows XP, Microsoft even added back (drum roll please…….) the ability to double click an icon to open a folder. Now if they could just fix it in Vista…..
There are some minor annoyances, but those may be cleaned up in the final release. Overall the Web Folders implementation in Windows 7 is a HUGE improvement over Vista.
If you need instructions on setting up a Web Folder in Windows 7 we have them at the MY Docs Online FAQ here.

Could you clarify this more? You mean Windows 7 has the 64-bit Web Folders old client?
Did Microsoft roll back to the old web folder client in Windows 7? We don’t think so. It behaves differently from XP Web Folders. The problem with Vista Web Folders was only with 64-bit versions and it is believed THAT is caused by the rosebud update process not being able to update 64-bit systems.
Rosebud.exe COULD update 32-bit systems, and thus was able to apply the Software Update for Webfolders (KB907306). That update is required for Vista Web folders to work (at least in our testing).
That update is NOT required (again in our testing) for Windows 7, so Windows 7 32-bit AND 64-bit systems work fine.
I could never get WebDAV to work in my Windows 7 64-bit to connect to my cPanel web disk. That’s why I was a bit surprised WebDAV in Windows 7 works great for you. I still like the Windows XP WebDAV.
Anyways, I had to use other WebDAV clients such as the one recommended in this article – http://www.techiechips.com/web-folders-web-disk-webdav-problems-on-windows-7/
Works great in my 64-bit installation.
This is a shame that Microsoft won’t just release this fix in the Windows updates. This is really poor planning.