So, how was it done.
First, go get yourself the Windows 7 Release Candidate (free till June 2010)
Then, read this tutorial:
It tells you how to get Windows XP Virtual machine running on Windows 7. Follow the steps in the tutorial. Once XP finally launches, go in to user setup and create an account for the user that will be using the machine. You will also need to join your local domain as well as set up printers (or reports will not work in navision, even in preview mode). Once done, reboot your machine.
Next, when windows 7 loads up again, go into the VM properties, and delete the default account "User" this will then prompt you for a username and password the next time you launch the VM client.
Once it is working properly and you can run Navision inside the VM client, simply copy the shortcut from the XP machine (to Navision) and jump back over to your windows 7 desktop and cut and paste. From this point on, you can run Navision 3.7 as a virtualized application directly from Windows 7.
If you need more detailed instructions, just let me know.
For Search Engines:
Does Navision 3.7 work in Windows 7 compatibility mode
does navision 3.7 work in virtual windows xp
navision 3.7 on vista compatibility
navision 3.7 compatibility with windows 7