Photostory3 in Window 7 - NOT always

This is a calamity. Photostory3 is not supported in Win7 in some cases. In an upgrade from Vista to Window 7 the programme was not flagged as an issue. However, when it went to run it crashed as not suitable for this version of windows.

Microsoft compatibility does not register it as problematic. However, an online search shows that it is an issue with many others in Win7.  Why 'almost', well it seems some people have got it going. It seems that there is a version 3.1(which is not available for download) that works but it came as of a package that was being distributed a couple of years ago. In addition, I have found that it does work on one work laptop that I have. Both my home one and the work one are HPs, and both upgraded from vista Business to the same Win7 Professional! One worked the other didn't. What gives?
This a serious issue, and I would certainly recommend schools holding off on upgrading to win7 while photostory3 is not available.  It is such a simple educational tool that is so widely used that I think it has really serious consequences.
I have tried to uninstall and re-install pstory.msi. Result it won't install again, but gives the same compatibility message. I have tried to run it as administrator etc., have tried all the compatibility modes but to no avail. It is a dead duck in the water.

This is disappointing, along with Blogger's dropping of the video option in these blogs. You used to be able to make a quick photo story or load an audio track into a photo story and upload directly here into your blog. But no longer. Now two simple child friendly features have suddenly evaporated from the educational toolkit.

Footnote. It is possible to run Photostory3 within Virtual PC, but this is a long and circuitous route, and my little netbook certainly doesn't have the capacity to do it properly. Using virtual pc is not viable solution for schools. Unless the programme can be guaranteed to run in the upgrade I would be wary of moving to win7...