System 7: INIT Does Not Work in the Extensions Folder

INITs (called "system extensions" in System 7) that do not work when loaded
to the Extensions folder should be moved to the root level of the System
folder. Some INITs written for System 6 expect to be at the same folder
level as the System file.

To put an INIT into the root level of the System folder without having it
automatically routed to the Extensions folder, open the System Folder and
drag the INIT into the folder's open window, rather than onto the icon of
the System Folder. Automatic routing only occurs when you drop something
onto the icon of the System folder.

If the INIT still doesn't work at the root level of the System Folder,
check with the source to make sure the INIT is compatible with System 7.