Once you've created the frame the part of the code with your conditional isn't going to get entered. To put it another way, at the time you execute the test if (btn1Clicked == true)
, the button has not only not been clicked yet, it hasn't even been displayed to the user.
Lose the booleans and move the line with the btnConvertDocuments.setEnabled(false)
into your actionListener. Make the buttons instance variables, do not make them static variables. (Alternatively you could keep the buttons as local variables and assign each of them their own anonymous inner class listener.)