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i dunno what else to tell ya i run win 7 64 bit and had no problem
i use megamud v1.03u used the winterhawk auto install
i did not use any of the combatility settings

Did you install Megamud into its default location on Win 7? If so that is a large part of your problem.

Do you still have your 1.03u installer? Maybe what I am downloading is bad.