No reason you can't run SH3 on Win 7 natively.
I have the DVD, patched to 1.4, installed GWX3.0 and SH3Commander.
Set your resolution to 1024x768 the first time you run SH3 and it start. Then, exit and edit D3D9.cfg (in your SH3 directory) with notepad. Change the resolution to whatever you normally use. Save and restart SH3. You will now be running at your chosen resolution.
I run at 1920x1080 and have not had any problems.
If you have problems with getting SH3 to run on windows 7 - pm me and I will help out if I can.
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Good Hunting!
Captain Haplo
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