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Just answered my own question. I checked daughters puter with 7 and it runs fine in the compatibility mode for XP w/SP3 mode.
Just right click on the icon, go to properties, check the "Run in compatibility mode for..." and then select Windows XP with SP3.





What I found on my windows 7 box, was that in addition to running xp sp3 compatibility mode, I needed to check the "run in 256 colors" check box. This is in the settings directly under the drop box for compatibility mode.