Just tried running the Distortion Control 2.0018, it expands correctly both under Win XP and WIN 7
Being a simple compressed file self-extractor, there is no version checking here (same for all other firmware updates).
For Nikon Capture/Nikon View, it would be a better option for Nikon to display a warning "Windows 7 environment detected", with a disclaimer, and then the software gets installed anyway. So responsibility on accepting some glitches and/or a program crash passes on to the user. The way they did it has the least impact on Nikon (no extra work on their part, wiping their hands clean of the problem), except for their reputation...
I don't like this type of behaviour. Nikon can -and should- do better than that!
Ciao from Massimo