Okay... First trial:

Second trial using Win7's "Compatibility mode" set to Win95
resulted in the same message.
On other discussion boards/ groups, I'm told that 16-bit apps won't run
on 64-bit systems.
http://social.answers.microsoft.com/Forums/en-US/w7programs/thread/2022da11-3e0d-4520-be0f-fd5ef5a01f7e
Therefore, I just shelled out another slug of money ($85), and
purchased the upgrade; from
Windows 7 Home Premium to
Windows 7
Professional, and with it (once it arrives tomorrow), the ability to
download Virtual PC. I'm not holding breath; however, given how my luck
has been running in dealing with legacy issues.
The following tests were run from Windows Explorer - or whatever it's
called in Windows 7:
Other executables failing to run:
ADJUST.EXE
ASTRO.EXE
BLUNDER.EXE
CEFB.EXE
CGCMM.EXE
CMM2SMI.EXE
CMM2TDS.EXE
CMMCG.EXE
COMBIN.EXE
COMPAR.EXE
Comparw.exe
CSTUF.EXE
CURVE.EXE
FFTOOBS.EXE
GETCR.EXE
lha.exe
LIETZ.EXE
LOOPER
PROPORT.EXE
RAW.EXE
SECTSHOW.EXE
Sortlas.exe
SSHOT.EXE
TDS.EXE
TOKCP.EXE
UTM.EXE
WHATIS.EXE
The following were also tested and appeared to work or in fact do
work.
Apw.exe worked
Checkerw.exe just flashes for an instant and produced no error display
like shown above.
CMM07.exe (12.19.2009) worked
Cmovew.exe just flashes for an instant and produced no error display like
shown above.
convert.exe just flashes for an instant and produced no error display
like shown above.
Dxfw.exe just flashes for an instant and produced no error display like
shown above and I've gotten it to work in CMM07
Generw.exe just flashes for an instant and produced no error display like
shown above and I've gotten it to work in CMM07.
Inrecw.exe just flashes for an instant and produced no error display
like shown above.
LEVEL.EXE just flashes for an instant and produced no error display like
shown above and I've gotten it to run in CMM07
Lsa386w.exe just flashes for an instant and produced no error display
like shown above and I've gotten it to run in CMM07.
PRELEV.EXE just flashes for an instant and produced no error display like
shown above and I've gotten it to run in CMM07.
Projecw.exe worked
PTW.EXE just flashes for an instant and produced no error display like
shown above.
RENOBS.EXE worked
Sdw.exe just flashes for an instant and produced no error display like
shown above.
TOLSAW.EXE worked
After the Virtual PC thing-a-ma-bob is installed, I will re-test and
report back here. Stay tuned.