Ok I took the plunge with Windows 7 RC, as a MSND developer I downloaded the New RC release and did a straight upgrade of Vista (not a dual boot) on my new IQ504 and had no issues what so ever and everything is working. Except it will not let me install updates as the HP installer does not recognise the OS, but I got round that. It's way cool.

http://blog.ehuna.org/2008/12/windows_7_running_on_hp_touchs.html

The Vista installers won't work on Windows 7, but you can use 7-Zip Portable to extract the drivers from the EXEs downloaded from the HP support site above. The installers are compressed using WinRar, which is one of the formats supported by 7-Zip.

OR

1) Run the vista driver setup - sp#####.exe

2) Hit next until the extraction completes

3) a dialog should show asking you if you want to continue - leave it open

4) go to the temp folder - C:\Users\(user name)\AppData\Local\Temp

5) copy the folder pftB###.tmp to the desktop

6) got to pftB016.tmp\Source\src and run Install...wait for it to complete