COLGeek :
According to Microsoft's Win 7 Compatibility site, it is not compatible. FSX is much better, as ijack pointed out, and is compatible with Win 7.
Good luck!
http://www.microsoft.com/windows/compatibility/windows-7/en-us/default.aspx
Thanks COLGeek, further use suggests that:
It does not always start up when invoking it from the CD. Do not like the fact that I can`t load it without the CD, but I guess this is a product of its time.
It seems to work in the "Fly Now Mode" (so far anyway) except maybe for the rudder (still working on that one)
Does not like the "Flying Lessons Mode" especially in the axis plane settings (the 172 is unless here anyway they don't supply any flight manual)
Some of the problems may be between MS2000 & Win7 but some are just ignorance (e.g. flight manual). I do agree though that FSX is better but at what cost you have to buy loads support loads for say a 172 or any other model use full to know. Now your cost goes up several times and if you started out with the a Sidewinder 3D Pro (an analog device) you have to invest in a USB joystick as well (or better).