What you tried should have worked. Details, please:
After transfer the $ icon has a slash and gets error message that application not supported by Power PC etc.
Presumably this was before you downloaded and installed the updated version of Quicken 2007. Correct?
I did upgrade to new Quicken 2007 which runs but I can"t transfer any data because of disabling of quicken.
What do you mean by "disabling of quicken"? If you have the latest Quicken (the one that runs under Lion and Mountain Lion) and you have the data file containing your Quicken data, have you tried to tell Quicken to open that file?
When I take external drive to y old computer it looks like the info has been deleted.
Please describe what you see that makes you think this.