Yes it will work. I set it up on my Inspiron 1720 back when Windows 7 was in Beta before the RC. I never used it so I did not install it with RC.
Ok, I've spent the past 2 hours looking for some information on this.  I have been using Windows 7 for the past 6 months or so with my Dell Inspiron 1525.  With this, I formatted the HD completely, removing any partitions with it to have a completely clean install.   Now, I don't know too much about Media Direct, as I never used it when I originally had it on this laptop.  What I do know is that if I want to use Media Direct on this PC I'll have to reformat once again(which isn't a problem at all) but I would like to know if it will work with Windows 7 being the ONLY O/S on the computer?  I realize I will have to install Media Direct prior to installing the O/S, but will it work with Windows 7? If anyone could provide any information with this it would be greatly appreciated.  Also if any of the information I have posted is incorrect please inform me aswell.  As I said before, I never used Media Direct and know little to nothing about it, so anything would be greatly appreciated.  Thank you for any information you can provide.
Using Dell Media Direct with Windows 7