I am pleased to confirm that I have got DVDWS2 working perfectly on Windows 7 Pro, XP Mode.
I am using VMlite Workstation as my virtual machine and XP Mode.
You can use virtual box.
DO NOT use MS Virtual PC as it is way too slow and clunky.
You cannot burn directly to disc but what I do is burn to folder or image and then use my windows 7 burning software.
Long Live DVDWS2 it's great.