I suppose that I was looking for a more definitive answer. I am in need of a new machine; but I have a production application that has to have the ability to reat & write single sided, double density 3.5" floppy disks. I if win 7 will not do that then I am going to have to build a machine that runs XP. Thanks for posting.
I plugged in my USB floppy drive to my 64 bit Win 7 and was able to write to and read from it.
Then plugged it in to a 32 bit laptop and was able to read and write.
conclusion: Yes it works.
Just as a precaution, I would reformat older floppys before use.