AutoCAD P&ID 2012 - Cannot create a new Project inside the vault

We have EPDM 2011. We have begun testing AutoCAD P&ID 2012 for use within the vault.  When attempting to create a new “Project” within AutoCAD P&ID 2012 we are unable to select a folder within EPDM for the “Specify the directory where program-generated files are stored:”.  What happens is that once we get to the top level folder for the vault view the “Open” button in the AutoCAD window becomes grayed-out.  We are unable to select any folder within the vault.  I am using Windows 7, 64-bit

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