Windows 7 does obfuscate those directory paths. The first thing I do on a new system is reset the default folder settings so that I can see where my files actually are.
The upload.verbose statement is not in the file by default, you have to add it.
Does the Bourduino work with Windows 7?
I have programmed several Boarduinos from my Windows 7 64-bit machine - as recently as last evening. I use the FTDI cables from the Adafruit Store. I believe I had to download the correct driver from the FTDI site. http://www.ftdichip.com/Drivers/VCP.htm