UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                  SCHEDULE 13G


                    UNDER THE SECURITIES EXCHANGE ACT OF 1934

                               (AMENDMENT NO. 5)*

                            FalconStor Software, Inc.
--------------------------------------------------------------------------------
                                (Name of Issuer)


                         Common Stock, $0.001 Par Value
--------------------------------------------------------------------------------
                         (Title of Class of Securities)


                                    306137100
                            ------------------------
                                 (CUSIP Number)


                                December 31, 2006
             -------------------------------------------------------
             (Date of Event Which Requires Filing of this Statement)



Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:

         |_| Rule 13d-1(b)
         |X| Rule 13d-1(c)
         |_| Rule 13d-1(d)


*The  remainder of this cover page shall be filled out for a reporting  person's
initial filing on this form with respect to the subject class of securities, and
for any  subsequent  amendment  containing  information  which  would  alter the
disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the  Securities  Exchange  Act of
1934 ("Act") or otherwise  subject to the liabilities of that section of the Act
but  shall be  subject  to all other  provisions  of the Act  (however,  see the
Notes).






CUSIP No. 306137100                   13G
--------------------------------------------------------------------------------

1         NAMES OF REPORTING PERSONS
          I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

                                  Eli Oxenhorn

--------------------------------------------------------------------------------

2         CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

                                                                 (a) |_|

                                                                 (b) |_|

--------------------------------------------------------------------------------

3         SEC USE ONLY


--------------------------------------------------------------------------------

4         CITIZENSHIP OR PLACE OF ORGANIZATION

                                                                 United States
--------------------------------------------------------------------------------

                                  5     SOLE VOTING POWER
                                        2,514,329 shares
           Number of
             Shares             ------------------------------------------------
          Beneficially
            Owned By              6     SHARED VOTING POWER
              Each                      211,077 shares
           Reporting            ------------------------------------------------
             Person
              With                7     SOLE DISPOSITIVE POWER
                                        2,514,329 shares
                                ------------------------------------------------

                                  8     SHARED DISPOSITIVE POWER
                                        211,077 shares
--------------------------------------------------------------------------------

9         AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
                                2,725,406 shares

--------------------------------------------------------------------------------

10        CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
          (SEE INSTRUCTIONS)
                                                                           |_|
--------------------------------------------------------------------------------

11        PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
                                      5.7%
--------------------------------------------------------------------------------

12        TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

                                       IN

--------------------------------------------------------------------------------






CUSIP No. 306137100                  13G
--------------------------------------------------------------------------------

1         NAMES OF REPORTING PERSONS
          I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)

                     Eli Oxenhorn Family Limited Partnership

--------------------------------------------------------------------------------

2         CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

                                                                      (a) |_|

                                                                      (b) |_|

--------------------------------------------------------------------------------

3         SEC USE ONLY


--------------------------------------------------------------------------------

4         CITIZENSHIP OR PLACE OF ORGANIZATION

                                                                     New York
--------------------------------------------------------------------------------

                                  5     SOLE VOTING POWER
                                        211,077 shares

           Number of           -------------------------------------------------
             Shares
          Beneficially            6     SHARED VOTING POWER
            Owned By                    0 shares
              Each             -------------------------------------------------
           Reporting
             Person               7     SOLE DISPOSITIVE POWER
              With                      211,077 shares
                               -------------------------------------------------

                                  8     SHARED DISPOSITIVE POWER
                                        0 shares

--------------------------------------------------------------------------------

9         AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
                                 211,077 shares

--------------------------------------------------------------------------------

10        CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES
          (SEE INSTRUCTIONS)
                                                                          |_|
--------------------------------------------------------------------------------

11        PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)
                                      0.4%

--------------------------------------------------------------------------------

12        TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

                                       PN

--------------------------------------------------------------------------------





ITEM 1.
                  (a)      Name of Issuer:
                           FalconStor Software, Inc.

                  (b)      Address of Issuer's Principal Executive Offices:
                           2 Huntington Quadrangle
                           Melville, NY 11747

ITEM 2.

1.                (a) Name of Person Filing: Eli Oxenhorn

                  (b) Address of Principal Business Office, or, if none,
                      Residence:
                                             56 The Intervale
                                             Roslyn Estates, New York 11576

                  (c) Citizenship:           United States

                  (d) Title of Class of Securities:
                                             Common Stock, $0.001 par value
                                             per share

                  (e) CUSIP Number:          306137100

2.                (a) Name of Person Filing: Eli Oxenhorn Family Limited
                                             Partnership

                  (b) Address of Principal Business Office, or, if none,
                      Residence:
                                             56 The Intervale
                                             Roslyn Estates, New York 11576

                  (c) Place of Organization: New York

                  (d) Title of Class of Securities:
                                             Common Stock, $0.001 par value
                                             per share

                  (e) CUSIP Number:          306137100

ITEM 3.           If this statement is filed pursuant to ss.240.13d-1(b) or
                  240.13d-2(b) or (c), check whether the person filing is a:

                  (a)   |_|   Broker or dealer registered under section 15 of
                              the Act (15 U.S.C.78o).

                  (b)   |_|   Bank as defined in section 3(a)(6) of the Act
                              (15 U.S.C. 78c).

                  (c)   |_|   Insurance company as defined in section 3(a)(19)
                              of the Act (15 U.S.C. 78c).

                  (d)   |_|   Investment company registered under section 8 of
                              the Investment Company Act of 1940
                              (15 U.S.C. 80a-8).

                  (e)   |_|   An investment adviser in accordance with
                              ss.240.13d-1(b)(1)(ii)(E).

                  (f)   |_|   An employee benefit plan or endowment fund in
                              accordance with ss.240.13d-1(b)(1)(ii)(F).

                  (g)   |_|   A parent holding company or control person
                              in accordance with ss.240.13d-1(b)(1)(ii)(G).

                  (h)   |_|   A savings associations as defined in Section 3(b)
                              of the Federal Deposit Insurance Act
                              (12 U.S.C. 1813).

                  (i)   |_|   A church plan that is excluded from the definition
                              of an investment company under section 3(c)(14)
                              of the Investment Company Act of 1940
                              (15 U.S.C. 80a-3).

                  (j)   |_|   Group, in accordance with
                              ss.240.13d-1(b)(1)(ii)(J).






ITEM 4.           OWNERSHIP.

1.                Eli Oxenhorn:

                  (a)   Amount Beneficially Owned: 2,725,406(1,2,3)
                        shares.

                  (b)   Percent of Class:5.7%

                  (c)   Number of shares as to which such person has:

                        (i)   sole power to vote or to direct the vote:
                              2,514,329(1) shares.

                        (ii)  shared power to vote or to direct the vote:
                              211,077(2,3) shares.

                        (iii) sole power to dispose or to direct the disposition
                              of: 2,514,329(1) shares.

                        (iv)  shared power to dispose or to direct the
                              disposition of: 211,077(2,3) shares.

2.                Eli Oxenhorn Family Limited Partnership:

                  (a)   Amount Beneficially Owned: 211,077(2) shares. Eli
                        Oxenhorn is the general partner of the Eli Oxenhorn
                        Family Limited Partnership.

                  (b)   Percent of Class: 0.4%

                  (c)   Number of shares as to which such person has:

                        (i)   sole power to vote or to direct the vote:
                              211,077(2) shares.

                        (ii)  shared power to vote or to direct the vote: 0
                              shares.

                        (iii) sole power to dispose or to direct the disposition
                              of: 211,077(2) shares.

                        (iv)  shared power to dispose or to direct the
                              disposition of: 0 shares.

                  Exhibit A, a Joint Filing Agreement, was previously filed with
                  a Schedule 13G, dated August 22, 2001.

ITEM 5.           OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS.

                  If this statement is being filed to report the fact that as of
the date hereof the reporting person has ceased to be the beneficial owner of
more than five percent of the class of securities, check the following. |_|

INSTRUCTION:      Dissolution of a group requires a response to this item.

ITEM 6.           OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER
                  PERSON.

                  Not Applicable.

ITEM 7.           IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH
                  ACQUIRED THE SECURITY BEING REPORTED ON BY THE PARENT
                  HOLDING COMPANY.

                  Not Applicable.




----------
(1)  Consists of 2,502,829 shares of Common Stock held by Mr. Oxenhorn, 3,500
     shares held by the Eli Oxenhorn SEP IRA Account, and 8,000 shares held by
     the Eli Oxenhorn Rollover IRA.
(2)  Consists of 211,077 shares of Common Stock held by the Eli Oxenhorn Family
     Limited Partnership.
(3)  The reporting person disclaims beneficial ownership of these securities
     except to the extent of his equity interest therein.







ITEM 8.           IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP.

                  Not Applicable.

ITEM 9.           NOTICE OF DISSOLUTION OF GROUP.

                  Not Applicable.

ITEM 10.          CERTIFICATION.

                           By signing  below each party  certifies  that, to the
                           best of his/its knowledge and belief,  the securities
                           referred to above were not  acquired and are not held
                           for the  purpose of or with the effect of changing or
                           influencing   the   control  of  the  issuer  of  the
                           securities  and were not acquired and are not held in
                           connection   with   or  as  a   participant   in  any
                           transaction having that purpose or effect.






                                    SIGNATURE

         After reasonable inquiry and to the best of their knowledge and belief,
each of the undersigned hereby certifies that the information set forth in this
statement is true, complete and correct.

Dated:  January 24, 2007


                                       /s/ Eli Oxenhorn
                                       -----------------------------------------
                                           Eli Oxenhorn


                                       ELI OXENHORN FAMILY LIMITED PARTNERSHIP



                                       By: /s/ Eli Oxenhorn
                                           -------------------------------------
                                           Name: Eli Oxenhorn
                                           Title: General Partner

ATTENTION:   INTENTIONAL MISSTATEMENTS OR OMISSIONS OF FACT CONSTITUTE
             FEDERAL CRIMINAL VIOLATIONS (SEE 18 U.S.C. 1001)