SQL 2005 works perfect with windows 7, just as it works perfectly with Server 2008 (Both are the same architecture in design)
If you have issues with SQL 2005 again, try adding the command /resetsettings to the target of the exe (This will reset, each time you use it rather than using via command line). There are also a set of target commands that can be used, these have a wide range of functions including resetting the SQL profile (Which is effectively what /resetsettings is).
You can also do a manual reset as well, just by deleting the appdata C:\Users\<USERNAME>\AppData\Local\Microsoft
You can also reset from regedit HKEY_USERS/DEFAULT/SOFTWARE/MICROSOFT & HKEY_LOCAL_MACHINE/SOFTWARE/MICROSOFT
I would only suggest deleting reg keys as a last resort and always backup before you, also which does cause a problem for all variants of SQL. When you un-install SQL, it does leave behind various reg keys, you need to delete these manually before proceeding with a fresh install.
Just some useful information for future reference, if I find command lines for target I'll post them up, as these solve some many problems.