I'm running Win7 and my internal floppy drive (which I haven't used in
a couple of years) works fine.
1. Check in Device Manager under Floppy Disk Drives and verify that
it's showing up.
2. If it shows up in Device Manager select it and look under the
General tab to make sure it's listed as working properly.
3. If it's there but not working properly go to the Drivers tab and
make sure it's not disabled and also that it has a functioning driver.
(those choices will make sense when you get there)
Hopefully this will shine a light on the problem. Since you can use it
when booting under XP it seems to me that the motherboard recognizes
the hardware so it's got to be either somehow disabled or there is a
driver issue under Windows 7. You don't say if you are 32 bit XP and
64 bit Windows 7 etc...that I suppose could also make a difference.
Wish I had something more definitive to help you but the steps above
will at least be a good start towards troubleshooting.
Seeing as how floppy drives are aging legacy devices with no current
practicality save for resurrecting old archives I would suggest that
if you cannot get it working under Windows 7 that you simply boot
under XP and copy all of your floppies to a more universal format and
give the drive a nice burial!
You are going to find that the
magnetic floppy media are deteriorating anyway just like magnetic tape
and your old discs are going to become less reliable to the point of
breaking down and becoming unreadable. The time is now to preserve all
those old memories and data onto a more modern medium. One cheap 4 GB
thumb drive I suspect will hold ALL of the data on your old floppies
unless you really have a ton of them.