It looks like Windows 7 environment variables in the registry must be of the type REG_EXPAND_SZ (hexadecimal). That means "Command"=hex(2):22,25,57,49,4e,44,49,52,25,5c,5c,73,79,73,74,65,6d,33,32,22,00 instead of "Command"="%WINDIR%\\system32" (which does work on Windowx XP and 2000). edit: except for icons, where you can still use "icon"="%WINDIR%\\system32\\shell32.dll,4" for example.