JBoss Developer Studio 7 can't recognize JBoss EAP 6.1.1 Runtime

I am currently trying to create a simple Web Service on JBoss Developer Studio 7. When I try to create a JBossWS runtime I get "Error occurred while loading JBossWS Command. Select the correct JBoss Server folder." Is there special setting I need to do in order have JBoss EAP 6.1.1 working with JDS 7? Please help! I'm also attaching the picture