@cbuy
The main reason for this is because Droid Explorer uses a local "minimized" sdk which has a version of ADB. this causes issues where there are other versions installed on the system.
This is something that I am going to correct in a future release, but in the mean time, a solution you could do is to stop the droid explorer service:
Command Prompt: net stop droidexplorerservice
(you may want to do an "adb kill-server" from the command line as well at this point, just to make sure adb is stopped)
copy over the files from your sdk/tools to C:\program files\droid explorer\sdk\tools
then restart the droid explorer service
net start droidexplorerservice
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