There is simply no response from the application. There is no Direct Folders service listed (not even stopped or manual) and no Direct Folders process running. It's as though I never did anything.
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How to reproduce
Install the application under Vista Ultimate x64, then double-click in a folder window or click the middle mouse button (scroll wheel). Try a common Open or Save dialog. There is simply no response. AVG does *not* report any virus, and disabling real-time protection or firewall has no effect and creating an exception for the installation folder has no effect.