The selected directory is already watched by another import configuration From Docuware Knowledgebase KBA-35847
This has been an issue that we have encountered a number of times. The above is the link to Docuware’s answer and below is a combination of Docuware advice and our own. 

When attempting to create an import configuration in the DocuWare Desktop Apps, the following error occurs when you select the directory you want to monitor:
“The selected directory is already watched by another import configuration”


This error occurs if another DocuWare user or another Windows user already has an import configuration on the same client that uses the same directory.
There are several ways to fix this problem.
The simplest way would be to login as the Windows user / DocuWare user, which currently uses the directory, and to change the directory or even remove the hole import-configuration.

If the user login is not available and you are using Docuware 6.7 (and others before 6.10) we have used this technique to remove the issues.
We do not support this and only do this if you are capable of undoing your work if it does not work for you. :

CMC Imaging only provide this as reference information and not as an approved solution.

If you are like most of my clients, the computer was being used by someone we will call user #1.

User #1 no longer uses this computer and it is given to User#2
User#2 tries to setup Import to pickup files from the same directory as User#1 and can not because of error. 
Assuming that User #1 is gone here is how we have gotten rid of the issue.

1: Login as an administrator to the PC.
2: Close Docuware Destop App(icon in corner) then STOP Docuware Desktop Services(task manager or administration\Services)
3: Open C:\ProgramData\DocuWare\Desktop\Secure
4: Create BACKUP directory
5: Move Everything in Secure Directory to BACKUP directory
6:  Open C:\ProgramData\DocuWare\Jobs folder
7: Delete everything in this location including files and folders.
8: Restart Service and Restart App
9: Create New Import Job. 

From Docuware.
Another way to fix the problem is to edit the file “hotfolders.xml”, where the import job configurations are saved.
To do so, please use the following steps:

  1. Stop the DocuWare Desktop Service and exit the DocuWare Desktop Apps.
  2. Locate the file “hotfolders.xml”. This can be found up to DocuWare version 6.10 in the AppData directory of the “DocuWare Desktop Service” user:
    • %localappdata%\DocuWare\Desktop
    • C:\Windows\System32\config\systemprofile\AppData\Local\DocuWare\Desktop
    • C:\Windows\SysWOW64\config\systemprofile\AppData\Local\DocuWare\Desktop
  3. Since DocuWare version 6.10, the “hotfolders.xml” is stored in the ProgramData directory:
    • C:\ProgramData\DocuWare\Desktop
  4. Open the “hotfolders.xml” in an editor and search for the directory you want to use. Specify a different directory:
    Entry before the change: <Hotfolder>C:\Import\Invoice\</Hotfolder>
    Entry after the change: <Hotfolder>C:\Import\Imvoice_old\</Hotfolder>
  5. Start the DocuWare Desktop Service and the DocuWare Desktop Apps.
  6. Now you can create a new import configuration with the desired directory.