IFileSaveDialog - choosing folders in Windows 7

The reason for this can be found in the documentation:

FOS_PICKFOLDERS: Present the Open dialog offering a choice of folders rather than files.

Using FOS_PICKFOLDERS for "save" was never supposed to be supported - but Vista didn't enforce it. Use IFileOpenDialog instead and you're good to go. You are picking an existing folder (not specifying a folder to create), so open was always the correct choice.

I haven't played around with the Windows 7 dialogs yet, but downloaded the Windows® API Code Pack just this morning as I am implementing the Thumbnail Toolbar and Icon Overlay in the application I am working on. It'll probably point you in the right direction.