Will not function with Windows 7, what is wrong?

It is not necessary that every program running on Windows XP will also run on Windows 7. Then you need to run an application in Windows 7 compatibility mode, make older programs run in this version of Windows. If you still face the problem, then you can also visit: http://www.askpcexperts.com.

Not all programs that worked in Windows XP will run in Windows Vista or Windows 7.
I suggest you try compatibility mode to see if it helps.

If the program is not compatible, then you may try to install and run the program in compatibility mode.

Use the following steps:

1) Right click on the Program

2) Click on Properties

3) Click on Compatibility tab

4) Select Run this program in compatibility mode and select Windows Vista or whatever operating system the program was running successfully.

Refer to the link here: Make older programs run in this version of Windows

http://windows.microsoft.com/en-us/windows7/Make-older-programs-run-in-this-version-of-Windows

If the compatibility is not successful, then try and runthe Program Compatibility troubleshooter:

1. Open the Program Compatibility troubleshooter by clicking theStart button.

Then click Control Panel. In the search box, type troubleshooter, and then clickTroubleshooting. Under Programs, clickRun programs made for previous versions of Windows.

2. Follow the instructions in the troubleshooter.

If you cannot install a program, insert the installation disc for the program and, using the troubleshooter, browse to the program's setup file, usually called Setup.exe, Install.exe, or something similar. The troubleshooter is not designed to work on programs that have an .msi file name extension.

If you run Windows 7 Professional or Ultimate version, install Windows Virtual PC and Windows XP mode (http://www.microsoft.com/windows/virtual-pc/default.aspx) and execute your software in Windows XP.

If you run Windows 7 Home Premium, try VirtualBox (www.virtualbox.org) or VMware Player (www.vmware.com) and install a separate copy of Windows XP (either Home Edition or Professional) for that purpose.You can find virtualization software free of charge that will run on Windows 7 Home Premium.
Hope this helps.