Windows 7: Compatability Mode Issues

Hello,
I'm having issues with compatibility mode in windows 7. When I try to run any program in "XP Compatibility Mode", the mouse displays the "thinking" icon for a few seconds, but then it returns to the regular mouse while staying at the desktop - the program does not open. However, if I go into the task manager, it shows the program running in "processes", but not in applications.
This effectively means I can't run any programs in compatibility mode, as the programs do not open normally.

Some further details:



1) This issue applies to all the compatibility modes from Windows 95 through to XP Service Pack 3, but NOT to the three Windows Vista modes (IE, the programs open normally in Windows Vista compatibility mode).
2) Running as administrator does nothing to change this issue.
3) Using the "graphics" compatibility settings works as intended (Ie, checking 256 colors or 640X480 resolution does in fact open programs with these settings). It is only the "OS" compatibility settings that do not.
4) I have never applied a "Watermark patch", and I checked the security settings in my user32.dll file - they are at the settings recommended by another potential fix to a different compatibility issue.
5) I have checked the system integrity of my files (SFC / SCANNOW) and everything is fine.

I'll be happy to perform any further details or take any steps - I just want to avoid trying a reinstall.

Hi Dysplastic,

What specific applications are you trying to run that are causing this issue or does it apply to every application?

Every application - from games like Demigod to simple music players like foobar2000. I originally discovered the issue trying to run System Shock 2 in Windows 7, then discovered it happened regardless of what application i tried.

Have you tried doing a system restore? If that doesn't work I would do a repair install

Have you used any System utilities for cleaning up the filesystem/registry or applications that modify/change Windows settings? Have you also changed/reconfigured any services from their default configuration?

Yes I have!
I use CCcleaner to clean up the filesystem/registry - I suppose it's possible that it changed a key setting?
I also use RivaTuner to overclock my video card, but I don't imagine that is relevant.
I've also disabled some services, following the "safe" recommendations of BlackViper here.
Windows 7 Service Configurations by Black Viper
I can give a more specific list of what services are disabled when I get home, but in the meantime, can you think of any services that would be essential for Compatability mode to work properly?

My System restore points by now are all past the point where this problem started happening. Would a repair install require me to reinstall any of the other applications I've installed since?

Its quite possible CCleaner removed some required system keys, It doesn't really support Windows 7's configuration yet

the "Program Compatibility Assistant Service" being disabled is an obvious one, I cant be 100% positive the disabling of other services also prevents Compatibility Mode from working properly but we should assume it does...

A repair install quite possibly will require you to install a few applications, I cant be sure about that either without knowing a full list of the installed applications... It wouldn't be many if any at all

Ok - A few programs isn't a big deal.
Would a repair install restore the services and registry keys to their default settings?
I'm going to restore the services to their defaults over the weekend, and if that doesn't work, I'll do a repair install. I'll post back with my results.

Ok, I tried both resetting my services to their default settings, which didn't work, and performing a repair install as outlined in your guide here. Repair Install
This didn't work either - I still have the same issue with compatibility mode.
Help!

Well, I know there haven't been any replies, but I thought I'd post one last piece of information before giving up.
I'm running windows 7 64 bit. As such, there is a "program files" folder, for native 64 bit applications, and a "program files (x86)" folder, for 32 bit applications.
Needless to say, there aren't that many programs in the "program files" folder - but for those that do, compatability mode (limited to Vista) works! I tested this with Ventrilo, NOD32 Antivirus, and a program called DVD Maker - all 3 worked in Vista compatability mode as they were native 64 bit apps.
Does this help narrow the issue at all?