I had a similar problem. 

It appeared that I had a link in one of the folders directing to the
top folder again. So, basically I had an endless loop for SC to work
on.

SC 7.01 had no probs with that (obviously broke up or had a better
algorithm to recognize loops), but 7.1 looped forever.

Removing the link solved the problem.

You can easily search for it in the command line with "dir *.lnk /s"
command in the root folder that you pointed SC to.


-- 
jwka
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