QUESTIONS:
Have you run the install application as Administrator, right?
Have you done the Compatibility mode thing, right?
It seems like a lot of people are having similar issues trying to get their games to run on their PCs under Windows 7. Frankley, I am so sick and tired of this crap, that I am considering putting my XP hard drive back into my machine and selling Windows 7 on Ebay. It seems like really nice, as long as you don't try to run any games. Geez!
Sorry about the ranting!