Sorry for late reply, steam version works great on windows 7 and can be recorded happily with dxtory, it looks to be missing the bonus cd content, something I hope they patch in or add as dlc, I wouldnt mind paying $5 for that extra content :-)
I do hope more beta testing spots open up, maybe even the ability to youtube it as I would love to add this to my channel, I can not wait, I had a disk version since it came out many many years back now I have it on steam