If you run across the error "You Must Have a Valid Directory Name" then that means your Laserfiche Settings are not set up correctly. Follow these steps to fix the issue.
Click on the blue Scanner Icon -
Click on "File -> Choose Scan Source"
Select "TWAIN" in the pulldown options and ensure "Show Scan Source Setup" is checked
Select "PaperStream" in the following pulldown option:
Your Laserfiche Scanning should now be set up to use the Scanner. Adjust your "Paper Source" and "Color" options as needed.