I thought about virtualizing it with Thin App, but the application is very dependent on being able to write to the Windows Directory, and it depends heavily on the c:\documents and settings\All Users\AppData\Local\Temp directory for storing temp files, which Windows 7 locks down even to local admins. We tried changing the Permissions and owners of those directories to the users of those PC's, but it still did not work.
The other problem we have with ThinApp is that the users workstation has to be enabled from the server that the software reports too, and with ThinApp, it looks like it is comming all from the same server which locks up all subsequent users.
We are currently running Windows XP VM's for many users, but management wants to move forward with Windows 7, and we want to see if the compatibility will work and get this app running properly under 7, and if so, we can move forward giving these users Windows 7 Machines, otherwise, we will have to have those users remain on XP while all other users are on Windows 7.