First time I had the same problem. But now, I can play both HD-DVD and Blu-Ray with CyberLink PowerDVD Ultra v7.3.3319a on Windows 7. Maybe you can try my config in this pic below.
Hope you will enjoy your HD experience on Windows 7.
http://203.146.170.50/file/e8d0d32fa01b19ee4e7b26140a210aae/4a11a0eb/dev17/0/007/953/0007953516.fid/19-05-2009.original.1242669155_0.48802600.jpg?image/jpeg