No, the software isn't compatible with Windows 7 & Windows 8. In fact, according to the System Requirements, the software is available for Windows 98, ME, Windows NT4.0, 2000 / and Windows XP. That's the reason it works in XP. There should be a possibility to install the software in Windows 7 or 8, but the problem is with the dongle. It's possible that the drivers are lacking compatibility with these two versions of Windows.