2007 should be fine on Vista (even though Vista is horrid!)
Most likely problem is the length of the path to the video.
Try deleting the video then move the video into the same folder as the presentation and re insert it.
Ideally have the folder somewhere with a short path too. C:\PPTS\ for example though the desktop is usually OK in Vista C:\Users\You\Desktop\
wmv is most likely to work.
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