The application is a bit old and this could be the reason why the program shows errors. As far as I know, even the installer creates problems when it's used in Windows 7 and the compatibility mode will surely not work in this case but you are welcomed to use it. Right click the executable file, choose Properties then navigate to Compatibility tab and pick Windows XP from the list and run the software again. If it does not work, then there is nothing you can do regarding this matter.
As an alternative, you can try Picasa as it offers the same features as Photowise and besides this you have also an One-Click solution for your photos.