NWDS 7.01.05 Creating Default Activity When Checking Out Files

I am trying to check out java files, and normally when I context click and select edit, I am prompted to choose an open activity. For the last couple of days, when I select edit an activity is automatically created that has <DEFAULT> added to the end. I then must move the file to the activity I would like the file in, and then delete the DEFAULT activity that has been created. I have found the solution for later versions of NWDS, but the method used has the user changing settings with in the window->preferences menu that do not exist in 7.01.05.

How the heck do I change this in the version I am using?

Thanks in advance!