Umm.. closing the laptop lid would put it into sleep or hybernate mode. If you disable that feature then I think even your current dock would work the way you expect it to.
To disable it under windows 7 got to control panel > system and security > power options. Now on theleft hand side click on the link called "Choose what closing the lid does" And from there you should be able to figure it out.
Thanks, that worked perfectly for me. don't need a new docking station now. not used to Win7 yet so good guys like you are a godsend. Bill