Since no one has replied to Mike, let me add some additional information to his post.
We installed iFolder 3.7 on the server and installed the client on three Windows 7 (32 bit) machines that we had just acquired and it worked great. A couple weeks later when we were just about ready to roll it out to our users, it quit working on all three machines. It continued to work great on Windows XP machines we have it installed on.
We upgraded to 3.8 partially in the hope that it had better support for Windows 7, but nothing changed. At the same time, our department has been rolling out a new anti-virus that includes a firewall and they have been making some adjustments to the firewall settings. All three of our Windows 7 computers have the new anti-virus and there is a possibility that a change in the firewall policy has caused out problem. We have not tried it on another Windows 7 computer, because we don't have one, but we may find one of our users that does and is not running the firewall if that could be the problem.
We are still delaying our roll out trying to resolve this issue and would appreciate any feedback you may have.