I bought this as it's cheaper than PSE 8 to run on my Windows 7 machine. I didn't realise that it's not officially compatible with Windows 7 so wanted to post a warning to this effect and to list the steps I took to get it to work.
At the end of installation an error appeared regarding Restore Points - this made the installation fail and wiped the PSE files from the hard drive. To get around this I browsed the CD contents and right-clicked the installer program which allowed me to set Compatibility Mode for Windows Vista. Once I'd done this the installation completed normally.
Once installed the program appears to run basically fine (I put it into Vista compatibility mode just to be safe) but there may be some bugs. One I've discovered is when using the Organiser part of the program. If you browse for folders to add to the library it fritzed out on me and would fail to see any folders I selected for addition. I worked around this by opening the organiser, not using their auto-adder prompt and just dragging and dropping the folders I wanted into the Organiser workspace. It then accessed and catalogued them.
Editing functions all seem to work perfectly well. However, there may be further bugs that I haven't discovered.
So I would say not to be too surprised to discover that there are more bugs. I'd probably recommend that people running Windows 7 pay the extra £30 and get PSE8. If you get PSE7 it will *probably* work but if it doesn't you might be stuck having to pay for PSE8 anyway.