I recently installed Windows 7 Pro and finally getting Oblivion +mods installed again, but when I install Nifskope v1.022 and then try and run it. It seems like it's trying to run but after about 20 seconds, nifskope doesn't even show up and my system locks up.

Anyone know what the problem may be or can recommend a more compatible older version of Nifskope?

It's perfectly compatible. Assuming you installed the windows.exe version, and have the required http://sourceforge.net/projects/pyffi/files/ installed, there's this bit of info from the ReadMe.

I already checked the firewall and gave nifskope all permission and still ran into the same problem, however I don't recall reading anywhere that nifskope required any additional requirements. Now that you mention it though, I think I do recall using python files to install it in the past.

Well, I installed the pyffi scripts to linked to, completely disabled Windows Firewall and it still locks up my system. Would installing it into the default Program Files (x86) be a factor?

No, it should be fine in the default location.
The only other thing I can suggest is to un-install it, http://sourceforge.net/projects/niftools/files/nifskope/, and re-install.
Or, you could try any of the older versions from that download page.
Also, make sure your video drivers are up to date. They've been known to cause issues.

Well I tried the old versions of both nifskope and Blender that I used when I had XP (they worked then), but they both locked up as well.
As for video drivers, I have the most recent ones along with the most recent DirectX. :shrug:

I take it no one else has any other possible solutions?