John:
When you asked about my 2010 discs, It was a DVD Disc. purchased directly from PG music. I guess the programs are just too large for CD's now. This was purchased as an upgrade (not "update") from 2009. Maybe I should try installing the 2010 first and see what happens. It installed and was running just fine on my old XP which was 32 bit. The reason I had started with my first disc (BIAB version 7.0) is that I understood that you must have the previous version installed in order to install the next version. When ever I had gotten a new computer, I had to start from the first install disc and then move to the next "upgrade". It had always worked fine but not this time. Windows 7 is totally rejecting the disc as incompatible with 64 bit.

Jazzmandan: Thanks for responding. I think my response to John above answers the questions you posed as well. I really wish I had a "computer savvy friend" to call on as you suggested but alas I have no one except paid technicians to call upon, and my Social Security income forces me to be extremely frugal in that respect.
I'm going to try installing 2010 first and see what happens. Will get back on later and let you know.