Use the New Source dialog box in Configuration Manager 2007 to specify the location of the virtual application you are importing into Configuration Manager 2007.

The New Source dialog box contains the following elements:

Source directory

Specifies the network file location of the virtual application you want to import into Configuration Manager 2007. Enter the network path to the virtual application. Alternatively, click Browse and select the directory. This location is where Configuration Manager 2007 will import the virtual application from.
Destination directory

Specifies the directory that Configuration Manager 2007 clients will use to access the virtual application package. This field cannot be edited because, by default, new virtual application package source versions will replace the existing virtual application packages with the updated virtual application package specified on the Source directory line.This network location is specified when you initially import a new virtual application package.