Thier site indicates that there maybe some issues with 64 bit versions of Photoshop, but it does mention that it will work with Vista. Win 7 was derived from Vista so it should work, but maybe only in 32 bit mode.
virtualPhotographer works on all 32-bit versions of Photoshop (up to CS3) on both 32-and 64-bit operating systems. Vista 64 for example will work using CS3. Photoshop CS4 comes with both 32-bit and 64-bit versions and the default installer will install both on a 64-bit system. virtualPhotographer is not compatible with CS4 64-bit on a 64-bit system. However we do have users successfully using virtualPhotographer with CS4 in 32-bit mode on 64-bit systems. The install path for virtualPhotographer in this case is:
C:\Program Files (x86)\Adobe\Adobe Premiere Pro CS4\Plug-ins\Common"
It is a free plug in so download it and give it a try, if there are issues you can always uninstall it.