OK, the first problem is probably related to the fact that you need to install new video drivers for your computer. Windows 7 does a good job of getting the drivers you need, but sometimes you need to go into device manager and force it to update them. Personally, I would install the video drivers directly from the video card vendor's website, namely nvidia or amd. Doing this will also likely resolve any issues you may have related to missing coprocessor drivers.

Now, on to your main problem. This one is no where near as easy to deal with. First thing's first, post your specs. If your computer came with Vista, it can probably handle 7, but let's not leave this area unexplored. If you can upload a photo of the bluescreen with the error code, that might help, too.