Hey man, I just created a new account on here to let you know that your problem can be easily solved by right clicking on the set up file, selecting the "Compatibility" and ticking the checkbox that says "Run this program in compatibility mode for:" and making sure that Windows XP SP 2 is selected. It passes the OS check, installs the driver (you might have to click okay for a windows message), after set up is complete it will give you a restart message, click Later, launch WMP and play a tune see if it works.
Tested on X-Fi Extreme Music on Windows 7 64-bit Public Beta.