I looked at a lot of different websites and none of them had clear instructions as to how to install Photoshop 7 on WIndows 8 or WIndows 7. This is what got it working for me. Use this information at your own risk.

> Go into Windows 8 DIsk Manager
> Right Click C: drive
> Shrink Drive by 50-100GB (Needs to be under 930GB for most drives.)

> Copy all files from your Photoshop 7 CD to your harddrive
> Navtigate to: Photoshop\setup.exe
> Right click setup.exe
> Click Compatibiltiy tab
> Click Change Settings for All Users
> Check "Run this program in compatibiltiy mode for: WIndows XP SP3
> Check "Run this program as an Administrator
> Click Ok
> Click Run Compatibiltiy Trouble Shooter
> Click Try Recommended Settings
> Click Test the program...
> This should prompt you for permission to install (password, etc.)

You will get some errors installing it, but it installs and runs successfully. I hope this helps.