Glad you got the right software for the card. It's pretty interesting that while none of it says it's usable with Win7 (even 32-bit) but rather is intended for XP, that your experience confirms that of others as you've described... and that it DOES work with 32-bit Win7.
Interestingly, the sets of driver files you pointed to on the MS Update Catalog site seem to be older versions: (1) Version: 3.0.83.2026, Version Date: 1/31/2005 and (2) Version: 3.0.83.2030, Version Date: 3/3/2005.
In contrast,
the existing ATI driver site (for the official current XP version) which was pointed to by Stormy13 is a bit newer. Running the self-extracting installer file for the "HDTV Wonder Drivers v6.1" and then looking inside the resulting INF in the expanded folders, it is described as "DriverVer=09/26/2005, 3.0.83.2036".
Furthermore, when I myself did a search on the MS Update Catalog site for pci\ven_14f1&dev_8800&subsys_a1011002 (and 8801 and 8802) and downloaded everything which returned, I got the identical most recent 3.0.83.2036 versions which match the current ATI drivers. I don't know why you retrieved the older versions from the MS Update Catalog site.
Trying to use the downloaded official ATI WDM installer file (in self-extracting self-running EXE form) seems to at least get started on my 64-bit Win7 system (which is how I expanded it, to look at the imbedded INF) although I obviously canceled it and didn't let it actually run the SETUP.EXE past the initial screen.
As to whether it would actually successfully self-install the five drivers (for the five ATI DTV devices ultimately shown in your Device Manager screenshot) if allowed to run in your 32-bit Win7 system, well I don't know.
But certainly the same set of INF etc. files you downloaded from the MS Update Catalog site (or, certainly the 2036 latest version if you go after it again) and then used to install the drivers in your 32-bit Win7 system is also contained in the self-expanded result of running the ATI installer file to produce the expanded folders, even if you don't complete the official ATI installation itself in Win7.
Nevertheless, glad your story ended with success and that your ATI DTV Wonder card is now working properly with WMC on your older+smaller 32-bit Win7 system, and that you can actually tune to digital channels and record programs. Oh, and it's NOT an "All In Wonder" card containing both graphics and TV tuner. It's just a "DTV Wonder" tuner card. It's original eBay listing was definitely not quite accurate.
In the end, this was obviously the goal.
P.S. - if you're ever looking to upgrade to a dual-tuner card, I can highly recommend the
Hauppauge HVR-2250. Two OTA/ATSC tuners, and works perfectly with WMC 64-bit. I don't use the WinTV app that Hauppauge provides, because I depend on WMC and WMC extenders to remote HDTV's around my home. Plus, I already use WMC with a Ceton InfiniTV4 cablecard-enabled 4-tuner card to support access to my Time Warner Cable copy-freely and copy-protected content. And WMC supports both TV tuner cards simultaneously (i.e. I have SIX tuners, 2 for OTA/ATSC and 4 for cable).