I'm not sure if I got this right, but from what I've read on this forum Fallout3 is incompatabile with Windows7 in 32 bit and 64 bit! Is that correct?

It will run on Windows 7. I run it fine on there as well as many others. You should post a dxdiag so we can see your specs.

Thanks for that info. I'm not currently running a windows7 rig. I'm just starting a new build and am going to run windows7. But if there were compatability issues I think I'll try the dual OS method. But then again I'll have to do some homework as I'm not sure about XP Pro combatability issues with current technology. Thanks again for the tip.

I have it running fine on W764 but the game is installed on a separate hard drive than the OS. I think it helps to have the game installed to somewhere other than the default location.

Yes it does. Specifically, you don't want to install it in Program Files if you're running either Vista or Windows 7. The UAC security system will cause problems, especially if you get into using mods. A separate hard drive isn't necessary though, just somewhere besides Program Files.