That seem very strange - I am using Windows 7 x64 and it works - but that I have already written. Which version of CH did you install?
Also - please check application/error event log (My computer->Manage->...) if it contains any information about Copy Handler. It may give a clue.
I am using Copy Handler 1.32 beta-svn224.
Here is to show it app installed
http://i31.tinypic.com/x0p3rt.jpgI don't have any options when I right click and drag and drop a file.
http://i29.tinypic.com/4q4z85.jpgI started the application and this will show that there is no process running.
http://i27.tinypic.com/1432u4z.jpgI have checked my Error, Warning, and Critical Errors to see if there is anything about Copy Handler and nothing. This is a very new install as well. Copy Handler is one of a few apps I have running.
Thank you again for your help. Let me know if I can provide anything else. Thank you for all of your hard work on this! I love the app!