I currently dual boot XP 32 bit and W7 pro 64bit without any issues. I prefer to run my simulators on XP versus Windows 7, for various reason. Better compatibility and performance being the big two. There is another way to dual boot XP when you already have 7 installed, but it looked like more of a headache then going the XP first route to me.
Will CFS2 run on 7 decently? Yes, but no where near the performance of a good XP system.
I doubt MS will give us the code. It has the very basis of every simulator before CFS2 and of every simulator all the way to perhaps even FLIGHT. And speaking of age CFS2 is 12 years old. I don't know about you, but I don't run any other programs as old CFS2. The only other that comes close is FS9. IL2 1946 is still 'officially' supported and patched. 12 years and still operated is a testament of CFS2's flexibility, and the support of it's small but highly dedicated community. But, as being an old program that has only an extremely small community surrounding it; the original developer has no interest to support or develop it any further.
The aspect of the Flight Simulator, or even Simulator has hashed and rehashed many times. Simulators of any kind that go beyond the bounds of 'normal' arcade games are a very niche subset of computer based entertainment. A subset that very well may not make the returns viable enough for a company, even Microsoft, to produce another.
Hence why CFS2, and IL2 have never been replaced in the World War Two air combat segment. And why, for the moment, FS9, FSX, X-plane 9 and 10 are the only viable civil Flight simulators available to the public. (Though Prep3rd is maturing very well).
Now the question is what will happen once XP is no longer supported by Microsoft? Will it continue to be able to be ran on systems that once supported it? Maybe. they send out a final 'patch' to firmly shut down the 'old' OS? It is possible. But as computer systems, and part advance, XP will become no longer supported. In around two years time we may all be running CFS2 on Windows 7. So perhaps it is prudent to look in to ways on how we can adapt CFS2 to Windows 7 as it is now. Because in the next full iteration of Windows, CFS2 may very well be rendered not compatible simply by it's age.