Mobshaul I have exactly the same problem, I installed my Rescue your Videotapes today on Windows 7. The process stops and gives up at the driver stage. The instruction book has no mention of Windows 7, only Vista and XP, despite the fact that it clearly says Windows 7 on the box.
So, sorry Mobshaul, I don't have an answer, but I would like this problem fixed as well. I will be returning my copy if I cannot sort this out.
Mobshaul I have success! Might not be the same problem for you, but I checked my anti virus software (I have Kaspersky) and it was identifying the driver as a worm virus. So I changed the Kaspersky settings so it allowed the worm activity, and voila, it worked.