The funny thing is, like Colin, we are also running P2000i (unsupported of course) on a handful of W7 stations, both 32 and 64 bit with no issues.  Pointing the finger at Pervasive may be accurate, and the link he provided is interesting.

Sorry, but Evo does suck up a huge piece of my time, and that is frustrating to me when I am being pulling in 20 other directions.  Just the nature of things.  Anyway, after doing a few packet captures this weekend and analyzing those,against a system that does work, it appeared as though the Windows 7 system was not properly caching the files locally. Once I fixed that, all finally seems to be well.