This may seem like a stupid question, but how are you watching the project? Simply playing the slide (using F3 or pressing the play button in the timeline) won't show interactive objects working. Use:
- F4 (to preview the whole project within Captivate)
- F10 (to preview a certain number of slides in Captivate starting with the current one--default is 5 slides)
- F12 (to preview as a swf in the web browser)
- or... I think it's F11 that previews as html5 output in a browser, although I don't use Captivate 7 so I don't know for sure
Edit: woops, looks like Lilybiri beat me to it 