FSPaxX works fine in Windows 7.
Needs a bit of tweaking in the department of crash detection (way too touchy) though, but it works well in FSX.
My passengers are usually wusses though. A bit of turbulence has the whole cabin collecively crapping their pants. But pass out some alcohol and bring 'er down and they will treat you like the dudes saving the day in "Airport". The flight attendant has the worst timing in history, coming into the cockpit right during an important ATC transmission just to tell me how well I am looking today. Or to complain about (butt-)touchy passengers. Or complain that she's bored. She should rather be picking better IFE movie choices. "Battle Of Midway"....really, random flight attendant? A movie with lots of crashing and burning planes while we're descending into Windy City or climbing out of DFW during a magnificent summer storm?
Oh well, at least I can still fly freight with FSPax. No passengers, no IFE movies, no flight attendant. Sounds fun. But noooo...drop a 737 in top notch condition with -600 fpm onto the runway at SAN and have the tires on your right main burst. Should have a baseball bat powered word with our maintenance department...
Next option: Small airliners. Short routes, no FA, no questionable movies, short legs. What's not to like? Well, except for the fact that passengers haven't grown any cojones. Small commuters are simply more susceptible to turbulence, you complaining bags of cash! If you don't like it, go by f'in car!
All in all, FSPax thinks I'm a lousy pilot while I think it's a lousy judge. That'd be enough reason to throw it out, but somehow, it gives my FS life a purpose.
Kind of like your average marriage...