Now I think I get it. Delphi 7 is old. Windows Vista (or 7) is new.
You are running delphi32. Exe as administrator, for compatibility, aren't you? That is, if you right-click delphi32.
Exe (or the short cut), you have selected "Run this program as an administrator" in the "Compatibility" tab. If you run delphi32. Exe as an administrator, everything is fine, but if you don't, you get all these errors during startup.
You probably get the working directory wrong. Right-click the "Delphi 7" icon on the Start Menu, and Ctrl+C the working directory of this shortcut. Use this string as the Directory parameter of ShellExecute.
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