Many Windows 7 users experienced this and though the fix is incredibly easy many prefer not to mess with the games files and simply choose not to play the game.
My fix was not designed by me and is a product of "Stoop!d Monkey" of Steam and the original tutorial can be found at the link below
http://forums.steampowered.com/forums/showthread.php?t=1328904
This is an easy install and allow inexperienced users the ability to easily get back into the game, I take no credit for this work and have simply expanded on the original work of Stoop!d Monkey just as he has Bethesda.
Install instructions can be found in the Mod Archive, have fun playing the game again!
Changes:
V1.2 - Added Backup & Uninstall folder, see read me.