Try using
xliveless to bypass any RGSC/GFLW problems.
If you have any disk imaging tools, like daemon tools, you'll want to uninstall it.
Also, make sure to install the vc++ libraries from the game disk, there should be an installer, along with direct x and other third party installers. The file name should be vc_setup.exe or something of the likes.
I doubt this is windows 7 related.