Yes, I was using FSRepaint just a few days ago, on the Vcol ATR42 (Win7 H64) and it worked as well as always. I only have one complaint - since moving to Win7, every time I open the editing window, it's so big that I can't adjust it, as the edges are well off the sides of my screen!
Makes me want to use an external editor, but that can make things a bit more complicated
The dds files, such as those in the default aircraft, have always shown up rubbish for me in FSRepaint - but then I started using it with Vista, so aero already on the scene. Wonder if disabling would make a difference? I'll give it a go and find out.