I`m totally new with this. I have just installed MikTeX 2.7 and WinEdt 5.6 (Beta 1) on my Windows XP computer. I installed them both in the same folder (not in C local disk!), and I opened WinEdt. After opening the Thesis.tex sample file from Document -> Sample -> PhD Thesis I try to compile it by Accesories -> Compile (maybe it would have been simpler to do that from the buttons in the toolbar, but I didn`t know which one to select: Compile TeX document, TeXtify, LaTex - eventually I tried them all, with the same result). Next, I tried also with other tex files. I can see them in WinEdt, but when I push Compile, I get the same error over and over again:
Error Launching Console Application PDFTeXify ...
Command Line: texify.exe --pdf "C:\Documents and Settings\user\Application Data\WinEdt\Samples\Thesis\Thesis.tex"
Startup Folder: C:\Documents and Settings\user\Application Data\WinEdt\Samples\Thesis
The system cannot find the file specified.
I`m sure it must be something very easy, but now I feel like I`m loosing my patience.
Hope to ask more interesting questions next time. (after I manage to get started...

Thank you!