Hi Jason,
You don't say whether you have successfully run 5.4 M080 on Windows 7 (not in a VM). I have been using 5.4 M080 on Win7 for several months without any problems (other than ones of my own making...).
On my Win7 system there is a directory "C:\Users\Public\Public Desktop" which contains just the shortcuts to start Editor and Architect. APTCUSTOM is set as a user environment variable and points to the server directory where all our doctypes and custom files are located (on our network users must map the required share to a specific drive letter before starting Editor). I don't set APTPATH or APTCATPATH.
What VM are you using?
David
David S. Taylor
Project Manager, Structured Information
Institute for Research in Construction
National Research Council Canada
Bldg. M-23A, Room 239
1200 Montreal Road, Ottawa, ON K1A 0R6