You probably just need to turn off the auto updater for ps 7, since no more updates are going to be issued for photoshop 7.
1. Right click on the ps 7 shortcut and choose Run as Adminstrator
2. Go to Edit>Preferences>Adobe Online
3. Set the Update Options>Check for Updates to Never
Then hopefully when you run ps 7 again normally that error won't show
(normally means as you always ran ps 7 before)
