Cowabanga, thanks for letting me know that Gamestudio is COMPATIBLE with Win7.
However, I still have the same problem; when I try to change something in my code, it compiles fine, but it doesn't apply the changes.
I guess that Win7 and Gamestudio seems to be compatible(Haven't found how yet), however when it comes down to coding in SED, that for sure is not working properly.

-Doug