if your running 64bit win 7 then you wont be able to get it to work no matter what compatibility you use.
it does however work with 32bit win 7 with some compatibility settings.
There is a way to get it running on Win 7 64 bit.
You'll need to d/l the mod Fleet Operations and install it. Then download STA2Classic mod which, ironically, is a mod for Fleet Operations that reverts it back to Basic Armada 2. Basically you are modding a mod lol