RE: Windows 7
My 64-bit Windows 7 Ultimate runs everything without any "XP virtual machines". Yes, every 64-bit Windows runs 32-bit applications under WOW64, but that's it.
FMS runs ok after copying thye missing Direct3D DLL to the FMS folder. Haven't tried any other sims (as this Windows 7 box is used as a Home Theater PC and is always busy recording TV).