New
#281
It should work right away without the need to change any configuration. It defaults to "Update Window" for the options "When opening a new window" and "When navigating to a new location", and "Disable state recording" should be left unchecked.
Sounds like it's failing to track folders for some reason. You could double check that by opening the options dialog (while you have a couple for folder windows open) and pressing the "Init Default From >>" button. It should display a list of the open folders, or if it fails to track windows a message box will come up saying that no windows are open.
The only case I'm currently aware of, where tracking completely fails, is running the 32-bit SFF on 64-bit windows (which shouldn't be happening anyway when using the installer). Otherwise maybe some other app could be interfering. Are you running anything else like Window Manager, shell extensions or explorer modifications?
You are running on 32-bit win7? (english?)