Hi all,
I did find a way to play ExileII (the demo-version, which I assume is the full game, but crippled) natively under windows 7. I'm running it on a laptop with windows 7 ultimate.
Right-click (or left-click if you're lefthanded) the gamefile, go to the compability-tab and make it windows 95 compatible, let it run at 640x480 and disable visual themes.
Hopefully it works for you as well!