I had the same problem that others have described with droplets not working... they are created OK, but nothing opens when dropping a file or folder onto the droplet icon. This was VERY FRUSTRATING for me too!

Anyway I realized it was a problem with an uninstall/upgrade thing and the registry.

History of the problem:

<FYI...I'm running Windows XP SP2 on a home-built PC with a 2.6 GHz Intel Core 2 Duo and 4GB ram.>

I had CS2 installed. I never tried it because my IT people made me uninstall it due to our lab license.

I installed CS from my personal license. Photoshop worked great until I tried using droplets.

Solution to the problem:

* Backup your registry
* Download the program 'Registry Find and Replace' (available from Softpedia.com) * Have that program search the registry and replace all occurances of 'Photoshop CS2' with 'Photoshop CS'.

* *This worked for me... but you need to modify the before and after registry values with the version you had and the version you had)

ADOBE--
You should take note of this and build a generallized registry PATCH!!

Hope this helps!!