You have a bit of a dilema, because while some us will just about remember Photoshop 7, you'll be lucky to find anyone here who knows Elements.
This Wikipedia page will tell you what features were added to different Photoshop versions
And this one fleshes out the info above
Then go ask the Elements guys what they think
You may have an other options. There may be some way to run PS7 on a windows 7 machine is with some compatiblity options in place and if that does not work there is Windows XP Mode for some versions of Windows 7 however support for XP mode is no longer available.
There seems to be problems running PS7 on Windows 7 after some Windows 7 update. So XP mode may be required.
Windows XP Mode
Applies to these editions of Windows 7
- As of April 8, 2014, technical support for Windows XP and Windows XP Mode are no longer available, including updates that help protect your PC. This means that if you continue to use Windows XP or use Windows XP Mode on a Windows 7 PC after support ends, your PC might become more vulnerable to security risks and viruses. Therefore, to keep your Windows 7 PC secure after April 8, 2014, we recommend that you only use Windows XP Mode if your PC is disconnected from the Internet. Learn more about Windows XP end of support.
I have PS 7 currently loaded to Windows 7 along with CS6 with no problems.
I have 1 supplier that sends me 1,000s of images with an extra Alpha 1 channel that I need to delete and CS6 doesn't see it.
I keep PS7 on my system mainly to run an action to delete the extra Alpha 1 channel.
Don't use PS 7 for much of anything else.
The OP states that PS7 does not run on his Windows 7 machine. Did you do anything special to get PS7 to run on your machine can remember that far back?
Some PCs will run PS 7 in an XP window, but not all are able to do this; it looks like Jerry's PC can do it. Apparently you need a graphics card that can handle 3D imaging, my PC does not have one and the expansion slots are too old to take a card that will do it. I have ordered a new PC with Windows 7 and hope to run PS 7 in an XP window.
I actually just got the new pc in Jan of this year and went from XP to 7.
Didn't do a thing to it, just loaded and was actually using it mainly for heavy actions on 1,000s of images until we bought CS6 Suite.
Use CS6 for eveything except the Alpha 1 channel issue from my 1 supplier.