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It seems that you have not given proper input/output parameter mappings:

Verify your watch folder settings as mentioned here -http://help.adobe.com/en_US/livecycle/9.0/adminHelp/admin.htm?content=000106.html

Also see "Using a watched folder start point" @ http://www.adobe.com/devnet/livecycle/videotraining.html

~ Varun

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