First of all, you should have posted this in your own thread, but let's see if we can figure out what is going on.
Secondly, the 2G Shuffle IS compatilble with Windows 7.
I assume you have iTunes installed and running on this PC and it is update to (10.7 is the latest version at the time of this writing.
Are you using a 2G cable versus a 3G/4G Shuffle cable? If you are using a 3G or 4G iPod Shuffle cable, it will not work with the 2G Shuffle as the connectors are different.
I assume you are plugging the iPod into a high powered USB 2.0 port located directly on the PC and through a hub?
B-rock