Hmm wonder if this is a punkbuster problem. A quick look on the net I found lots a folks
with problems with the Win 7 Beta and online games. Including COD WOW MP another longshot here
try to manually updating PB. Here is the link to the software if ya want to give it a shot

http://www.punkbuster.com/index.php?page=support.php

Try updating to the latest patches.  If that doesn't work, since you don't have much of anything installed yet, do a quick reinstall of Windows 7.

OK I solved the problem. Steam had a one day 50% off on Call of duty W@W so I bought a copy. The game is now working fine. The only down side is that I don't have my 5 prestige levels any more. Though there is one good side also. I can play zombies and CO-OP now. Since my name was already taken I had to modify it slightly. It is RedDragn-BK   instead of RedDragn-BK-

I can try to delete my old name since I still have XP running but I am not sure will that make it available again. I also have the old key and I could change it in the new installation. That should change the GUID to the old one I and in theory I could then use my old profile. Since I am an admin I'll compare my GUID's to see what happens.

Thaks to all that offered solutions.

How about ReDragon?

OK so I tried the key change and guess what happened. It looks that the servers don't like when you change the key in steam game. As soon as I connected to the server I got globally banned. I'll try reinstalling from steam to reset the key to their one and just play the game from level one. If that doesn't work I'll be signing off until BF comes out.

Heres the Answer, Get rid of Windows 7 and get Windows Vista 64 Bit Home Premium SP1 Lol Like me:) JK RedDragon!