Here's what I did to get StarCraft working perfectly in Windows 7.
Install VMware Player 3
. (It's free). 2.
Install a virtual Windows XP in VMware. (Through ISO, CD, or by converting your Windows XP mode base VHD file) 3.
Install VMware Tools and increase the virtual RAM in VMware to 64. Info to do this here
Install StarCraft and Brood War in the virtual Windows XP and apply latest patch. 5.
When you run the game, press Ctrl + Alt to input to desktop. The window will be small so just press the Windows Key and "+" to zoom in or "-" to zoom out to get it how you like it. (The graphics are good once you zoom in) 6.
Go into the magnifier options settings and put in 25% in the slider to get a more accurate zoom. 7.
Then click the 1st and 3rd box under "Tracking" and re-adjust the zoom to fit your monitor. 8.
Once you have the screen where you want it, move the magnifier icon out of the way, click the settings and unclick the "Follow mouse pointer" box to lock it in place. 9.
Play the game!