I can't remember if version 7 supports this option, but if you right click on the object, there should be an option to Trace Bitmap. If it isn't in the right click menu, check in the Bitmap menu. If it isn't there, open Corel Trace, then open the bitmap in there. After tracing the object, you have to save the path (I believe as an exchange file (.cmx)) Then open that back up (import) in Draw. Now click on the object, and click on "ungroup". If you view in Simple Wireframe, you will see a box outline around your image. If you click on that outline and delete it, you will remove any backgound from your image. Now highlight everything by draging a box with the arrow tool around the image. Click on "group". Your image should be back in tact. This sometimes doesn't always produce the best results. Let us know if this isn't what you are looking for.
Russell