You can use DreamScene in Windows 7. Download DreamScene for Windows 7: http://depositfiles.com/files/mk0dhj354 and http://depositfiles.com/files/5uzow74m4 .
Here is a Quick Guide for DreamScene in Windows 7:
How to Install DreamScene in Windows 7
Run the Windows7-DreamScene.exe as Administrator to install and enable Windows DreamScene on Windows 7. The installer will copy DreamScene.dll to %WinDir%\System32 folder, DreamScene.dll.mui to %WinDir%\System32\en-US folder and add the required registry keys and values. Then it will automatically restart the Explorer to make the installation of DreamScene works immediately.
A Windows DreamScene folder has also been created in *%WinDir%\Web* folder. You can place any video file that you want to set as DreamScene background wallpaper here as in Windows Vista, or anywhere you like. However, the folder is less useful as Windows 7 does not support direct viewing of video or animated media in Personalization Control Panel.
Windows 7 DreamScene Usage Guide
http://www.mydigitallife.info/wp-content/uploads/2009/01/set-dreamscene-desktop-background.jpg
To apply a video clip (in .WMV or .MPG format) as the DreamScene animated wallpaper desktop background, right click on the video media file, and select Set as Desktop Background in the context menu. Due to DreamScene been stripped from Windows 7 issue, video files may not be visible inside Personalization and Desktop Background configuration page. However, all features of DreamScene, such as Play DreamScene, Pause DreamScene and sound/audio are supported.
http://www.mydigitallife.info/wp-content/uploads/2009/01/win7-dreamscene-personalization.jpg
I hope that Microsoft will release officially DreamScene for Windows 7 (but only for Ultimate Edition) :)
Administrators: You can remove the links if you believe that against the terms of use and offensive of Microsoft. I do not want to hurt the company, only to help those who have questions..
Thank you!!