I'm having trouble converting wav files to flac using foobar. When I load the wav file and select "convert to flac" and press "ok" it then opens a window with a message that states "Please specify the folder containing flac.exe." I do not see that this file is included with foobar. Can anyone help?

If you already have flac.exe somewhere else, just point foobar to that directory. otherwise, copy paste flac.exe to the foobar directory.

Foobar2000 plays (decodes) FLAC without having to configure anything. Encoding to FLAC (or mp3 or others) has to be configured by pointing foobar2000 to the encoder program, in your case flac.exe. Download FLAC from http://flac.sourceforge.net/download.html and put it in the desired folder.