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It sounds like your Windows 7 machine has a 64-bit processor which were not available when P3 came out. You have a compatability issues between the software and hardware as P3 was written for a 32-bit processor. Try and right click the install file and choose to run the install in 32-bit mode as an administrator if available.
You can always buy a cheap (under 50$) used laptop/desktop running 32-bit windows xp that would easily have enough power to run P3.
Will using Windows 7 Professional with XP mode enable you to load P3 3.1? They advertise it allows you to run older software.
Another option is to use VMWare. I have an XP image running both P3.1 and P621 on a 64bit Win7 laptop.