Okay I have to admit I was rather sceptical when I bought this however I had already bored myself into a coma with grammar books while trying to get a basic grounding in the language and was willing to try anything to make learning mandarin easier. I have honestly never made a better judgement call, my mandarin has gone from being able to perform limited greetings to being able to describe my surroundings and even chat to people in the language! The rehearsal method really helps to encode the language into your long term memory, I've done some research into the cognitive psychology behind it all and it seems to really compliment the way we memorise things in day to day life. Learning was really quick and easy and if you have time to kill later in the evenings, on long haul flights or during a lunch break, I strongly urge you to give it a try. I hope it works as well for you as it has for me!
I have windows 7 and have had no problems at all. The downside to Rosetta Stone products is that they are only an expensive way to consolidate what you have learned elsewhere, and to learn some new vocabulary. It's definitely not a stand-alone resource.