Yes, I've successfully installed it ( Win7 64bit + Dev edition + SP1 + Team Explorer) and not encountered any issues so far.
I might try installing the smallest possible set of features and see if that works. If it did I would then add features back in 1 by 1.
Might try disabling UAC completely if you haven't already. Just search User Access Control in the control panel or something and it should show up.
So, i tried installing this on my other laptop, and it installed fine.
Only (software) difference between the 2 laptops was that one had been running for a few days longer, and had all of the windows update patches installed on it. So, I checked the first laptop that the install failed on, and there were a bunch of Office 2007 updates to install - so installed those and tried the install again. After the office patches were all in place, the VS 2008 Team Dev install worked. This still baffles me as to why it gave me such grief for the first couple days.
I just might have to fire up a VM if i get some free time to test this all again to see if that was really what fixed it - seems strange that office patches should block my VS install.
Make sure you're not running setup in compatibility mode for Windows XP SP2. Because then it will complain that it needs at least Windows XP SP2 to be installed which it cannot find. Also I couldn't install it from an ISO image mounted with MS Virtual CDROM. The error I got was "Couldn't load sitsetup.dll". Burning the image to a DVD and running setup from there fixed this problem.
I'm using Windows 7 Ultimate build 7000, 32bit, English.