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I have exactly the same problem with MM7.
I haven't uninstalled MM6 yet though and that still runs OK. When I try and install MM7 it says I only have DirectX on my machine and I need DirectX6. It's a brand new machine. I have downloaded DirectX9.0b from the Microsoft site but still the game insists I have only DirectX. I have tried uninstalling MM7 and re-installing it but it makes no difference.
I have tried continuing with the install process but when I try and play the game it doesn't come to screen. I'm as stuck as you I'm afraid.
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