Try the drive on another computer to verify that it is OK. I have Windows 7 on a box with a floppy and it is recognized and reads from and writes to floppies. It has Windows 7 Pro. My laptop has Windows 7 Home Premium. An Imation external USB floppy is connected and recognized. The OS reads and writes floppies. I, too have lots of them.
New drives are getting hard to find so test it and run out quiclky to find a new one if needed. <g>
Tom Ferguson