Win7 comes with XP Compatibility mode. So anything that works for XP should work for Win7.
The laptop itself is worse than a netbook you can pick up from Tesco for similar prices, but the issue with laptops is the them having 'intel graphics accelerators' opposed to actual graphics cards and it is this which cause the vast majority of issues with games. So if you want to go something oldest or refurbished, having an independent card for maximum compatibility is best.
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