That's as far as I got sorry.
I got a bit excited when i saw the recent patch on the HP site.
Are you happy using hpisnapp.exe directly?
If not, have you tried removing everything HP related, then looking through registry (Local Machine>Software...etc and all local user software also) deleting any HP keys you find. I have fixed other software issues like this before such as the Nokia Ovi Suite. Or even try revo uninstaller which can remove registry items for you.. just be careful!
Or a more agressive aproach to fresh build Win7.. (i mean, those HP guys have obviously tried their software on Win7 sucsessfully)
Alternativly, use Win XP Mode... or, keep waiting and watching the HP site... If you want this to work, you need to take some measures. I have pulled all my hair out trying to get this to work normally, in the end, I am happy to use XP mode till I win the lottery.
I will hang around tho, let me know how you get on, and I will let you know if I can get it working in a fresh build (virtualised)