I am quite new to Application Virtualization and simply wanted to use the template for IE7 to virtualize it. This seemed to be easy enough to do but when I try to add a website to Favorites, I get the error:

Unable to create 'website name'
The system cannot find the file specified

I think this might have to do with registry settings I may need to add but if anyone has already done this and can provide some assistance it would be greatly appreciated. I am running on XP Pro SP3.