In FB6, I have a System Variable named BDSUSERDIR, that evaluates to the My Documents\RAD Studio\5.0 directory and it's not in FB7 (7.0.0.515). For my build machine, it's the only variable from FB6's System list that does not appear in FB7's Application list. As a work around, I just added a user variable named BDSUSERDIR.
Just out of curiosity, why was "System" renamed to "Application"?
We did a major rework of how we deal with Rad Studio variables in FB7 because they just don’t play nicely when you have multiple versions of Delphi or C++Builder installed (which many people do). In FB6, those variables get set by the newest version of Rad Studio that FinalBuilder finds, and so for actions that are running older versions of the compiler the variables end up with the wrong value. I have been asking Embarcadero(and the previous owners) for many years not to use Environment variables for this very reason, but my requests seem to fall on deaf ears. IMHO, using environment variables to configure applications is pure evil!
Internally now, we still create those variables, but they are keyed by compiler version so that they are correct for each compiler version, and they are only exposed to the Delphi and C++Builder actions.
As for the renaming, too many users misunderstood System to be Environment or defined by the operating system, Application makes it clear they are defined by the application (I hope!). Functionally they are the same as in FB6.