I have written a Windows service using FileSystemWatcher. It successfully processes one file when dropped into the target directory, but doesn't do anything when a subsequent file is dropped. Any suggestions would be welcomed.

Post your code

To watch for changes in all files, set the Filter property to an empty string ("") or use wildcards ("*.*").
Look at WaitForChanged Method. - A synchronous method that returns a structure that contains specific information on the change that occurred.

Read more on FileSystemWatcher - http://msdn.microsoft.com/en-us/library/system.io.filesystemwatcher.aspx

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