I can confirm it does NOT work - not even with Virtual XP mode - I've tried it all. There just is no passing through that old SCSI interface communication between XP and 7. That's quite sad, because it is a wonderful scanner.
What would be truly useful would be for people to offer up alternative scanners of equivalent features as an option (no, not just "Hey, go over to Canon's site," but something like, "FYI, you could use this model - ABC123, I have found it to have equivalent features and it works on Windows 7."
Also, Canon's site is the WORST in the known universe (next to AOL ;-) So, when you click for "Windows 7" and "DR-5020" all it says is "nothing found." Wouldn't it be nice if they offered up: "But this scanner, Model 'xyz' has equivalent features and works with Windows 7?" Wouldn't that make a lot of sense?
NOTE: I have NOT tried the scanner with VMWare, just with XP Mode - there may be some differences, where virtual machines in VMWare might be able to talk to the SCSI interface - not sure. In general, we fought the battle and lost. My only thought is that if someone wrote a 3rd-party handshake utility, that could do the trick (like a similar case where HP PrecisionScan Pro software won't work on Windows 7 64-bit, but someone wrote a free 'Kapture'-something utility that invokes a generic TWAIN driver and then, supposedly, the PrecisionScan Pro software works after you run/load the Kapture product).
That would be nice. It's a shame that we have to throw out a wonderful scanner, which is now a boat anchor. I will most likely move away from the Canon product. Too bad, as we are now in the process of of tripling the size of our Alt Media office.